Tobacco Grower Malawi Sees Threat in Global Anti-smoking Campaign

Source from:  Africa Review 03/13/2013

Malawi President Joyce Banda says she is concerned the World Health Organisation's anti-smoking campaign might negatively affect Malawi's foreign exchange earnings.

However, she said despite the campaign posing a serious threat to the economic growth of Malawi the country would continue to grow tobacco for trade.

Tobacco is Malawi's biggest foreign exchange earner, accounting for up to 60 per cent of the southern African country's forex inflows.

Mrs Banda said that tobacco was crucial to the country's survival as it is integral to the implementation of her Economic Recovery Plan.

"This year's production has doubled last year's. We are expecting to produce about 156 million kilogrammes of tobacco. Last year we only manage to produce 80 million kilogrammes. Malawi is expected to realise $300 million by the end of the market," she said.

President Banda was speaking Monday when she opened this year's Malawi tobacco market in Lilongwe.

The Malawi leader was optimistic that the price of tobacco would not fall below the $2 rate highest price that buyers offered on the opening day.

Malawi produces high quality burley tobacco which she said was in high demand.

"My government is consulting with manufacturing companies, among others BAT [British African Tobacco] and other local companies, so as tobacco should be processed into cigarettes locally," she said.

She warned farmers against the black market and smuggling the tobacco to the neighbouring countries in search of better prices.

Malawians have struggled with soaring prices of basic goods after the country devalued its Kwacha currency at the behest of the IMF, serving to dent President Banda's popularity.

WHO's Framework Convention on Tobacco Control restricts the demand and supply of tobacco. Enditem