Tobacco Sales Resume

Source from:  by Taonga Sabola, 26 May 2006 - 07:40:09  05/29/2006

Tobacco sales which were suspended across the country last week resumed on Thursday with growers still complaining that there is no improvement in prices. Government ordered an abrupt closure of the sale on Monday last week after growers and buyers failed to agree on prices for the leaf. Farmers argued that the prices were below the cost of production. This was followed by a five-day series of negotiations with the buyers and other stakeholders which were fruitful, according to Agriculture and Food Security Minister Uladi Mussa. Mussa promised this week that prices would improve once the markets reopen. A visit to the Limbe Auction Floors yesterday revealed the same low prices that were being offered before the sales were stopped, with a greater percentage of the leaf being sent back to be re-offered for sale. Growers interviewed at random said the suspension of the sales only raised false hopes for better prices. "What were they discussing now? Where are the good prices here? I see no changes here. It was better they had not suspended the market," said Alex Mishoni, a grower from Mayaka in Zomba. Another farmer, Dennis Dias from Mangochi, predicted another closure of the market if the trend continues. Tobacco Control Commission (TCC) Regional Manager for South Richard Chimthuzi refused to comment on the sales saying it was too early for that. "The market has just opened today and it will be too early for me to conclude that the prices are bad or good. Let's wait for three to four days then we can have a true picture of the market," said Chimthunzi. His boss, TCC General Manager Godfrey Chapola said as far as he is concerned, the markets have opened and that his body-which regulates the tobacco industry-will not allow anybody to buy below the set prices. "We are only allowing the buyers to buy within or above the set prices and nothing less," said Chapola. Enditem