TIMB Says Tobacco Prices Stabilising After Shock $0.35/kg Sales
Source: TIMB Says Tobacco Prices Stabilising After Shock $0.35/kg Sales ⋆ Pindula News The Tobacco Industry and Marketing Board (TIMB) has moved to reassure farmers that tobacco prices are beginning to stabilise, a day after some bales were sold for as little as US$0.35 per kilogramme on Wednesday, shortly after the official opening of the […]
The Tobacco Industry and Marketing Board (TIMB) has moved to reassure farmers that tobacco prices are beginning to stabilise, a day after some bales were sold for as little as US$0.35 per kilogramme on Wednesday, shortly after the official opening of the 2026 tobacco marketing season.
The first bale of tobacco went under the hammer at US$4.60 per kilogramme, slightly lower than the US$4.65 recorded on the opening day last year.
However, some bales later fetched as little as US$0.35 per kilogramme, sparking anger among farmers who said such prices may not cover the rising cost of production.
In a statement issued on Thursday evening, TIMB said the decline in prices was largely due to a global oversupply of tobacco, the early opening of the sales floors, and limited participation by some buyers at the start of the marketing season. Reads the statement:
“The Tobacco Industry and Marketing Board (TIMB) acknowledges the prevailing global oversupply situation currently affecting the tobacco market.
“However, we wish to emphasise that the pricing conditions witnessed at the start of the marketing season were largely attributable to the early opening of sales floors and limited initial participation by some tobacco buyers, rather than any structural distortion of the market.
“We are pleased to advise that the situation is now stabilising. With the opening of contract floors today, encouraging improvements in pricing are beginning to reflect in the market.
“Stable prices were recorded at the auction floors and at Northern Tobacco, one of the contract floors that opened today. Notably, no grower complaints were received during today’s sales.
“The viability and welfare of the tobacco grower remain at the centre of TIMB’s mandate.
“As the regulator of the industry, TIMB will continue to closely monitor market developments and will not tolerate any conduct that undermines competitive integrity or prejudices the interests of our growers.
“We encourage all growers to remain calm and allow normal market dynamics to firm up as broader buyer participation continues in the coming days.”
