Tobacco prices set to improve this week

Tobacco prices are expected to improve this week as more merchants join the 2026 marketing season, following a sluggish start that saw low buyer participation and subdued early prices.

During the opening two days, only seven of the 43 registered buyers were active on the auction floors, prompting some farmers to withdraw bales in anticipation of better returns. According to the Tobacco Industry and Marketing Board (TIMB), by Thursday last week, 626 742 kilogrammes of tobacco valued at US$1 786 308 had been sold—down nearly 50 percent in volume and 57 percent in value compared to the same period last year, when 1 245 242 kg worth US$4 172 791 was sold.

Average prices this season stand at US$2,85 per kg, compared to US$3,35 last year, with the highest price reaching US$5,45 per kg, slightly below last year's US$5,75. A total of 8 471 bales were delivered, 7 258 sold, and 1 213 rejected, representing a 14,32 percent rejection rate—significantly higher than the 3,96 percent recorded last year.

Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development Professor Obert Jiri explained that the market typically undergoes a "price discovery" phase at the start of the season.

"When the floors open there is usually a price discovery process, where buyers and sellers test the market," he said. "As more merchants come in and volumes increase, the market begins to stabilise and prices start to firm."

TIMB spokesperson Chelesani Moyo-Tsarwe attributed the initial low prices to limited buyer participation, noting that the earlier-than-usual opening date contributed to the slow start.

"We expect that starting Monday, the prices will be better as more competition will push prices," she said. "The tobacco market is already beginning to show signs of stabilising as buyer participation increases across the auction floors."

Mrs Moyo-Tsarwe encouraged farmers to deliver well-graded and properly presented tobacco to maximise returns, while floor operators reported improved deliveries compared to last year.

Premier Tobacco Auction Floor operations manager Samuel Garapo noted that although some top prices are lower than last season, the increase in buyer participation could help raise prices.

"Deliveries improved compared to last year, but morale is going down. Our floors are full, and farmers came in anticipating higher prices. Participation of more buyers can help raise the level of prices so that farmers get paid," he said.

With greater competition expected this week, stakeholders are optimistic that tobacco farmers will start seeing improved returns as the 2026 season gains momentum.