In a scenario whereby tobacco farmers have grown excess tobacco than the demand by buyers, the Tobacco Commission (TC) allows the farmers to sell the excess tobacco, a process known as uplift. TC Chief Executive Officer said uplifts will be considered only when the farmers sell of their tobacco.
“We will offer uplifts when we are satisfied that at least 75 percent of our farmers have pushed in their tobacco,” Sadala said. Last year, oversupply of the leaf has chocked the auction floors forcing buyers to offer lower prices to clear the crop off the floors, as indicated by an AHL group commentary. This year, demand for tobacco was lowered due to anti-smoking campaigns, as it was revealed that this year’s tobacco yields were more than the required market amount.
Meanwhile, 44,767,897 kilogrammes (kg) of tobacco have been sold at an average price of $1.40, realising $62,888,800.25. However, the volume traded is 28% lower than the 62,031,268 kg sold in the first seven weeks last year’s.