Malawian Tobacco Expected to Fetch 178 mln USD in 2006

Source from:  Xinhua 06/12/2006

Malawi is expected to fetch 178 million U.S. dollars from tobacco sales this year, 9.8 percent up from last year thanks to higher production, local newspaper The Nation reported on its website Thursday. Despite the price problems that have hit the tobacco industry in recent times, Malawi's Tobacco Control Commission (TCC) said it expected a 9.8 percent revenue jump thanks to increased production of 158,000 tons this year compared to 145,000 tons harvested last year. "With the already sold tobacco and considering the unsold tobacco, it is projected that the total revenue realized on the floor will be 178 million dollars. This means a 9.8 percent increase over last year's revenue of 162 million dollars," according to tobacco market report compiled by TCC General Manager Godfrey Chapola. "This increase is attributed to slightly higher production of 158,000 tons this year as compared to 145,000 tons last year," it added. Tobacco alone accounts for about 70 percent of Malawi's total foreign exchange every year and it contributes 30 percent to the country's Gross Domestic Product (GDP), 25 percent of the country's tax earnings and over 70 percent of Malawians are directly or indirectly employed by the tobacco industry. Malawi presently has over 30,000 smallholder farmers involved in tobacco production after the World Bank asked government to liberalize tobacco growing in the 1980s which was heavily regulated. The impoverished southern African country is the world's largest exporter of burley tobacco, a thin-leafed brand that is dried in the open air. In the past years, farmers have persistently rioted and interrupted tobacco sales demanding better prices, which sometimes went as low as 60 U.S. cents per kg. In March this year, Malawian President Bingu wa Mutharika set the lowest prices for the produce and challenged any buyers unwilling to comply with the fixed prices "to pack up and leave Malawi." Enditem