MALAWI: Tobacco Sales Suspended Over Price Row

Source from:  Tobacco Journal International 03/23/2009

18 Mar 2009. Tobacco growers in Malawi forced government to suspend sales of leaf tobacco on Tuesday after a row over prices. "The sales have been suspended temporarily until buyers, growers and government reach an agreement," Tim Kachitosi, spokesman for the auction market Auction Holdings Limited told Reuters. The suspension comes a day after President Bingu wa Mutharika set higher minimum tobacco prices for this year's auction season. Mutharika set the minimum price for Burley at USD 2.15 (EUR 1.64) per kg, and that for flue-cured at USD 3.09 per kg. Last year, the minimum prices were set at USD 1.85 per kg and USD 2.15 per kg respectively. Tobacco sales in Malawi were already suspended last year when tobacco growers boycotted auctions after leading buyers protested against Mutharika's move to set minimum prices at the auction in an attempt to raise prices above the cost of production.(ci) Enditem