Malawi to Deport Tobacco Buyers If Prices Don't Rise

Source from:  Bloomberg 04/07/2009

Malawi, Africa's largest producer of burley tobacco, will deport buyers of the leaf if prices don't improve by April 15, President Bingu wa Mutharika said. Tobacco is currently being sold below government-mandated prices, he said during a speech in the northern city of Mzuzu yesterday. Mutharika has ordered buyers to pay at least $2.15 a kilogram (2.2 pounds) for burley and $3.09 a kilogram for flue- cured tobacco. "I engaged the buyers before I set the prices and they agreed to it," he said. "I have given them a grace period of up until April 15 and if the prices don't improve, I will deport them." Malawi's government started setting minimum prices for the various grades of tobacco two years ago after it accused merchants of putting farmers out of business. Dealers denied that they underpaid farmers. Tobacco accounts for 60 percent of Malawi's export earnings. Enditem