Malawi Stifling Tobacco Price With Supply, State Radio Reports

Source from:  Bloomberg 05/07/2009

Malawi, Africa's largest producer of burley tobacco, is stifling prices by producing too much of the leaf, the Malawi Broadcasting Corp. reported. The southern African country will produce 250 million kilograms (551 million pounds) this year, compared with the 200 million kilograms wanted by buyers, the Blantyre-based broadcaster said, citing Simon Green, regional director of Alliance One International Inc., a buyer. Burley tobacco has been selling for an average of $1.22 per kilogram, compared with the $2.15 a kilogram minimum price set by the government, the Tobacco Association of Malawi said on April 14. Enditem