Growers Contented With Tobacco Prices

Source from:  Daily Times (mw) 03/19/2013

Growers at Lilongwe Auction Floors have expressed general satisfaction at this year's prices of tobacco although a few others, whose tobacco sold at the minimum prices, say they expected better prices.

Random interviews with the farmers at the floors revealed a general positive feeling among the farmers, with visible calmness in the auction floors.

The prices offered last Friday ranged from 90 cents up to US$2.30 but were mainly hovering around US$1.20 at the end of the last day of the first week of trading.

"We can say this year's prices have started well. We only hope the trend would continue and get even better," said one farmer, Lameck Mikunde from Nkhotakota.

Another farmer, Felix Julius, said if things continued as they have started, this year could be one of the best in his tobacco growing career, saying he expects to realise considerable earnings based on current prices.

Julius had just sold three bales of burley at prices ranging from 95 cents to US$1.22 and still had 14 more bales to sale.

The view was shared by several other growers interviewed but a few others had a different experience.

Mickson Makalani of Lilongwe, who had sold 43 bales at prices ranging from 90 cents to US$1.50, said the prices were not as good as they were being touted, saying they were lower than last years when they could hit US$1.80 per kilogramme at the beginning of sales.

"I am not happy with these prices. I expected over US$2, looking at how prices of goods have risen. People might be excited with these prices but the money will not mean anything because of high prices of goods like fertiliser," said Makalani.

Tobacco Control Commission (TCC) Chief Executive Officer, Bruce Munthali, said earlier the market had started well with steady and better prices being offered.

He said he expected that the trend would continue.

According to unofficially released data from the floors, the market as of Friday had sold 2.4 million kilogramme realising slightly over US$3 million at an average price of US$1.25 since the start of the market at both Lilongwe and Chinkhoma auction floors.

Auction market sold a total of 1.8 million kg, realising US$2.2 million at an average price of US$1.24 per kg while contract market sold about 63,200 kilogramme for about US$815, 000 at an average price of US$1.28 per kg.

With the introduction of the Integrated Tobacco Production (IPS) system, it is expected that 80 per cent of this year's total volumes will be sold under contract

The market is expected to generate over US$300 million from the sale of 160 million kilogrammes of tobacco estimated to have been produced by growers in the country. Enditem