Tobacco Prices Refuse to Improve

Source from:  by Taonga Sabola, 02 June 2006 - 05:29:50  06/05/2006

Tobacco prices at the Limbe Auction Floors refused to get better Thursday despite improvements in the quality of the leaf offered. With farmers providing long and high quality leaf upper leaves, the buyers stuck to their low prices, a situation which resulted in more tobacco being sent back to be re-offered for sale. Out of the usual 5,000 bales offered for the market Thursday, about three quarters was sent back after the Tobacco Control Commission (TCC) felt that the prices declared were two low. A greater fraction of the tobacco which was approved for sale Thursday went away at an average of around 70 cents per kilogram. Growers complained that the more their leaf is sent back the more expenses they incur saying they are being made to pay 45 cents for per bale for every time the bale bounces back on the market after the second reoffer. Makasu Mbawala, a farmer from Chikwewo in Machinga, said the problem has affected them heavily saying they will have to part ways with more money in interest when settling a loan for agricultural inputs. Another farmer, Cidreck Gloss, said the delay in having their tobacco sales proceeds due to numerous reoffers will definitely delay next years production as they have to start preparing in time. TCC General Manager was not immediately available for comment but TCC Regional Manager (South) Richard Chinthunzi admitted that things were not alright. "Since the market reopened there were some signs of improvements but for the past few days things are beginning to go the other way and that's why ewe are having more bales sent back," said Chinthunzi. He expressed hope that things may change in the near future. Enditem