Malawian Tobacco Farmers 'are Exploited'

Source from:  June 13, 2006, By Gregory Gondwe  06/14/2006

Lilongwe (AND) The Malawi Confederation of Chamber and Commerce has said that Malawian tobacco farmers are not fully benefiting from their labour because of organisations in the tobacco sector that are exploiting and eating away at proceeds meant for the farmers. The Malawi Confederation of Chamber and Commerce (MCCCI) CE, Chancellor Kaferapanjira, who was speaking during a press conference in Blantyre on Monday said last year only 3 billion Malawi Kwacha ($21 million) went to tobacco agents in the form of levies, leaving farmers penniless. "These organisations are just milking the farmers," he said adding that the situation has been made worse with dwindling tobacco prices that have perpetrated poverty among growers who have to still pay levies even in the absence of profits. The MCCI boss said while tobacco prices in Zambia, Mozambique and Zimbabwe are equally low, growers' take home is higher because they are not subjected to levies. As of Monday, burley tobacco was selling at an average of $0.70/kg in Malawi's auction floors which is far below the recommended $1.10 for lower leaf and $1.70 for high-grade leaf. Out these meagre offers, the Tobacco Association of Malawi (TAMA) takes $0.70 per bale while Auction Holdings Ltd (DHL) gets $0.30 for Hessian levy and the Tobacco Control Commission (TCC) too takes something from the farmers. As if this is not enough, the National Smallholder Farmers Association (NASFAM) has also their cut from the farmers' proceeds. "These organisations are benefiting where there did not sow. They must justify their existence," insisted Kaferapanjira. Enditem