Tobacco Sales Resume, Farmers Still Not Happy

Source from:  BY Carol Govati 10:37:56 - 26 May 2006 05/29/2006

SALES of tobacco resumed Thursday at all the three auction floors, but farmers are still not happy with the price and have threatened to boycott producing the crop. Tobacco sales were suspended two weeks ago following a wrangle between buyers and sellers over low prices. President Bingu wa Mutharika directed, when he opened the tobacco market, that lower grade tobacco be sold at a minimum price of US$1.10 per kg and US$ 1.70 per kg for high quality leaf. But buyers irked farmers when they defied the presidential order and started buying the cash crop at an average price of US$0.80 per kg. An irate farmer from Machinga, Ulanda Pongolani, told The Daily Times Thursday at Limbe Auction Floors that tobacco prices were worse than before. "I think it will be better to stop growing tobacco because we are not benefiting as expected," Pongolani said. Pongolani alleged that prices were lower because the presidential directive on prices angered buyers. Major tobacco buyers Thursday refused to comment when contacted. But Tobacco Association Malawi (Tama) president Albert Kamulaga said discussions with all stakeholders were concluded Thursday. He said Tobacco Control Commission (TCC) would now be responsible for monitoring prices on the market. The disruption of tobacco marketing, a strategic export crop in Malawi, has sent shockwaves to the business community who were eyeing the dollars from the sales. Last week Malawi Economic Justice Network Acting Executive Director Mavuto Bamusi warned constant disruptions on the tobacco market would blow the economy, which largely depends on the crop for its forex. Enditem