Malawi Farmers Hit by Price Cuts

Source from:  Tobacco Reporter 03/14/2010

The minimum farmer price for Malawi's Burley has been set at $2.00 per kg, about seven per cent less than last year's minimum price of $2.15 per kg, according to a Bloomberg story. The Tobacco Control Commission was reported to have said that the minimum price reduction reflected a drop in the cost of production. A memorandum of understanding in relation to the prices had been signed with the buyers, and the commission's CEO, Bruce Munthali, was reported to have said that the commission did not expect to have problems this year. Presumably, he was talking about problems with buyers. The minimum price for flue-cured has been reduced to $3.00 per kg form $3.60. Malawi's tobacco sales season is due to open on March 16. Enditem