Malawi: Tobacco buyers warned

Source from:  By Tione Andsen Blantyre, April 23, TNL 04/26/2007

Blantyre, April 23, TNL: the Malawi leader president,Dr Bingu wa Mutharika has issued a warning that his would not hesitate to deport any tobacco buyers who exploits growers at auction floors. He gave the waning in tea growing district of Thyolo,50 kilometres away from the commercial city of Blantyre when he addressed a development meeting. Mutharika said it was noted that some buyers were bend at exploiting growers by offering low prices for their tobacco at the floors. The Malawi leader branded such buyers as colonialists--who were reaping from peasant farmers. He explained that his government could not tolerate such type of malpractice where tobacco growers are subjected to abuses. These buyers were offering cheap rates last year ranging from US$ 0.70 to US$ 0.80 as average prices. The same buyers in Zimbabwe were offering it at US$ 2.70 as an average price. This is totals mockery to our farmers,Mutharika pointed out. He said, if there are still buyers who are not a still willing to adjust they would leave this country and they should buy elsewhere. Our farmers need to be protected from such acts. The president disclose that last he sent his minister and delegation to Brazil and Thailand to check the tobacco pricing and they were shocked to see that there were better prices than here. Mutharika aid this prompted my government to set a minimum price of tobacco to enable growers meet the basic cost of producing the leaf. He pledged to use his executive powers to make tobacco growers have better prices for their produce. This is the warning to all tobacco buyers in the country to be mindful of my government vision of empowering rural masses by providing them with fair pricing of their commodities. If anyone tries to buy at a lower price, I would send him out. I am doing this to help our growers who have been exploited for so long,the president remarked. In July last year, Mutharika set a minimum price of tobacco after accusing some buyers of exploiting growers through prices the cost of production. Some tobacco commentaries have said setting the minimum prices of tobacco in the country was against the principles of market liberalization. The Tobacco Control Commission (TCC) General Manager, Godfrey Chapola said the country laws empowers the government to set minimum prices for tobacco. He said by doing so the government was trying to check the malpractices and exploitations the farmers have been going through in the past years. Tobacco remains Malawi's key player in the country economy employing over 70 percent of the labour force and contributes 60 percent of the export revenue. Some of the major tobacco buying companies are Limbe Tobacco and Alliance One. Enditem