Malawi's Tobacco Proceeds Drop by 2 Million U.S. Dollars

Source from:  english.people.com.cn 11/23/2006

Malawi's proceeds from tobacco have gone down by 2 million U.S. dollars this year compared to the revenues last year, the country's official tobacco regulatory body the Tobacco Control Commission (TCC) said in Lilongwe on Monday. "This year has been a terrible year for our tobacco compared to 2005," TCC General Manager Godfrey Chapola told reporters. Chapola said Malawi has this year realized 160 million dollars from 155 million kg tobacco produced compared to last year's total production of 145 million kg which earned the Southern African country 162 million dollars. Chapola attributed this year's low revenues to low prices at which the leaves were sold at all the country's three auction floors. He said that this year's low prices might force some farmers not to grow tobacco next year but still expressed great optimism that Malawi would still produce sufficient leaves. Tobacco prices on the country's three auction floors went to as low as 60 cents per kg during this year's marketing season. The product alone fetches about 70 percent of Malawi's total foreign exchange every year and contributes 30 percent of the country's gross domestic product (GDP)and 25 percent of the country 's tax earnings. Over 70 percent of Malawians are directly or indirectly employed by the tobacco industry. Malawi is the world's largest exporter of burley tobacco, a thin-leafed brand that is dried in the open air. Enditem