Issue link: http://read.dmtmag.com/i/566084
58 tobaccoasia LEAF NEWS 烟叶新闻 exacerbate food shortages in Zimbabwe, once the bread-basket of the region. Zimbabwe has a deficit of 700,000 tons, about half of its annual maize requirement. It requires US$300 million to import maize, vice president Emmerson Mnangagwa said in June. Some people fear that the push to tobacco farming, once controlled by about 1,200 mainly white farmers, was having worrying knock-on effects, as many smallholders simply cannot afford the expensive inputs required to make a profit from tobacco. Exports Earn $322m Zimbabwe has so far sold US$322 million from 59 million kilogrammes (m.kg) of tobacco exported to different parts of the world since January compared to 45.8 m.kg. sold in the same period last year. During the comparable period in 2014, $211 million was spent on Zimbabwe flue-cured tobacco. Latest data from the Tobacco Industry and Marketing Board (TIMB) indicates the crop is presently being exported to 51 countries compared to 45 during the prior period. At the moment China is leading as the major consumer of the "golden leaf" from Zimbabwe having so far imported 20.8 million kg valued at $176.8 million at an average price of $8.48 per kg. In second position is South Africa, having spent $22.2 million so far importing 7.6 m.kg. of tobacco from Zimbabwe at an average price of $2.92 per kg. TIMB says that Indonesia and Belgium have spent $20.5 million and $18.1 million on 4.9 m. kg. and 3.8 m.kg. of tobacco respectively. Russia, which was in fifth position, has so far spent $12.1 million importing 3.1 m. kg. of flue-cured tobacco. Other countries currently importing tobacco from Zimba- bwe include Poland, Morocco, New Zealand, Holland, the United Arab Emirates, Tanzania, Paraguay, Zambia, Madagas- car, Malawi, Kenya, Egypt, and Malaysia. In 2014, Zimbabwe earned close to $1 billion through tobacco exports. Contract sales this year recorded 145.4 m. kg at an average price of $3.11 per kg compared to 158.7 m. kg. sold in 2014 averaging $3.32 per kg after 98 days. India Board Eyes Global Markets Efforts are underway to promote exports to explore new markets and to retrieve old markets that India has lost out on, which promises to help India's tobacco trade. As part of these efforts, restrictions on foreign companies' participation in tobacco related activities have now been lifted and the companies will also be permitted to set up offices in Guntur, the tobacco center of the country. India will also start partici- pating in tobacco auctions and leaf processes. The Tobacco Board of India has held meetings with traders, growers and other stakeholders to discuss issues confronting the tobacco trade. Union minister of state for commerce and industry, Nirmala Sitharaman, who presided over the meeting, assured that tobacco would be purchased by traders within a price band that would be based on five years' average prices, according to K. Gopal, the board chairman. Average prices this year are lower than last year and exports are slow due to delayed orders because of excess carryover stocks and excess production globally. Tobacco farmers say they are witnessing lukewarm response in the ongoing auctions with only 46.5 m. kg of tobacco purchased by the end of June, or less than 50% of last year's year-on-year sales. Gopal said traders have now agreed to purchase the entire authorised crop of 172 m. kg in all regions, to be completed by end of September. The traders agreed to pay Rs 109-114 (US$ 1.67-1.74) per kg for the traditional bright variety, Rs 97-102 for medium variety and Rs 62-67 for low-grade tobacco. They also agreed to pay Rs 127 per kg for NLS bright grade and Rs 113 for medium grade. However, no indicative price has been given for the low grades. It was also decided that all would abide by the crop size and quality standards, Gopal stressed.