Discussions about buying excess tobacco are still ongoing, as revealed by TC corporate planning and development manager Hellings Nasoni. He said that it is guaranteed that excess tobacco, registered at 35%, will be bought by the buyers.
The overproduction follows buyers demand of only 152 million kilograms (kg) against 205 million kg of tobacco, translating into a 35% over production. Under consideration, 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.