Malawi: 10% MW Tobacco Lost to Smugglers—TCC

Source from:  Malawi Nation Online (mw)  02/22/2013

Malawi's Tobacco Control Commission (TCC) has estimated that every year Malawi loses almost 10 percent of its tobacco crop to smugglers who sell the leaf across the borders.

However, Ministry of Agriculture has said that in most cases tobacco smuggling is promoted by some players within the tobacco industry and has warned that this year stiff measures will be taken against all those engaged in the practice including intermediary buyers.
 
TCC chief executive officer Bruce Munthali said this means that, on average, the country loses almost $30 million (K11 billion, at the current exchange rate) every year through such illegal cross-border trading.
 
"We have not really done a thorough research, we are currently working on coming up with definite figures," he said.
 
Munthali spoke in the capital, Lilongwe where TCC held a joint press briefing with the Ministry of Agriculture to sensitise farmers on the evils of using intermediary buyers and also illegal smuggling of the crop.
 
They outlined measures which government has put in place to stop the practice.
 
Last year, the country sold at the auction floors almost 79.8 million kilogrammes of tobacco realising $177 million (K65 billion).
 
Munthali said this year; the volumes are expected to be higher than last year. Already 191 million kilogrammes are expected to be realised through 39 573 farmers who have been registered through both the integrated production system (IPS) contract farming and auction marketing.
 
"We have just concluded the initial assessment and passed the figures to government. The figures show a crop which is bigger than last year in terms of volumes," he said.
 
Deputy Minister of Agriculture Ulemu Chilapondwa said intermediary buying and smuggling have been a serious concern for government such that it is doing everything possible to curb the practice.
 
"Government has noted with great disappointment that the problem of illegal cross-border trade is being promoted by some stakeholders within the tobacco industry and Malawians who do not love this country," he said.
 
He also said that intermediary buyers are also promoting illegal cross-border trading.
 
Chilapondwa said it is the farmers who lose out much as they are mostly paid low prices ranging from K40 to K300 per kg as the buyers take advantage of the desperation of smallholder farmers who are looking for money to buy food.
 
He said government was aware that some individuals who include vendors and estate owners have already started buying the crop.
 
"This intermediate buying and smuggling of tobacco is illegal as per the laws of the land. If anyone is caught, he or she will be brought to book regardless of his or her position in society and government," said Chilapondwa.
 
He said already government has deployed officers from TCC, Ministry of Agriculture, the Malawi Police Service and other security agents to bring to book all those involved.
 
"Stiff penalties will be meted on those that will be found indulging in this malpractice including fines, confiscating the scales and the bought tobacco as well as revoking the licences to produce and sell tobacco at the selling floors," he added.
 
Chilapondwa, who blamed the continued practice on farmers and lack of enforcement of set laws, also appealed to them not to sell the tobacco to intermediary buyers.
 
The minister assured farmers that although government approved the IPS, the auction marketing system will still be used despite the rumours that the crop will no longer be sold in the auction floors. Enditem