Malawi: Poor Tobacco Prices Irk Producers

Source from:  Capital Radio (mw)  03/27/2013

Tobacco producers in the southern region are unhappy with the low prices being offered by buyers at the Limbe Auction floors.

There were also indications that there is a slow inflow of the leaf at the Limbe auction floors, a week after official sales commenced.

Tobacco Control Commission officials expressed satisfaction with the prices buyers are offering compared to the previous marketing season.

But some of the producers who spoke to Capital fm on Monday  said the price, mostly pegged at $1.70 per kilogramme, is on the lower side compared to the quality of the leaf.

There was no immediate comment from TCC officials on the matter.

But TCC announced earlier that Malawi has so far earned US$3 million from tobacco sales in the first week, since the commencement of the 2013 selling season.

TCC spokesperson Juliana Chidumu told Capital FM "at least 2 million 500 kilograms have been sold so far compared to last year's 1 million kilograms representing about 106 percent change."

She attributed the earnings to "good prices offered by buyers in Lilongwe and Chinkhoma Auction floors."

"This time we are having good prices and the buyers are abiding by the prices placed on each grade. $1.26 cents, while last year it was $1.2  representing a 23 percent increase in terms of prices compared to last year," said Chidumu.

Sales at the Mzuzu auction floors are yet to be opened.

Malawi is expected to earn at least US$300 million from tobacco this year, President Joyce Banda announced during the officials opening of Lilongwe auction floors.

Tobacco is Malawi's major foreign exchange earner. Other cash crops in Malawi include cotton, coffee, and tea, among others. Enditem