Malawi: Tobacco Buyers Caution Farmers On Minimum Prices

Source from:  Malawi News Agency  03/21/2014

Tobacco farmers in the country have been asked to understand what it is meant by the minimum price that has been set for buying the crop season, Alliance One Managing Director, Hugh Saunders cautioned.

Saunders said this on Wednesday when President Dr Joyce Banda held an audience with major players in the tobacco industry that included officials from companies that buy tobacco and those from government departments.

He said farmers needed to understand that the US$1.76 price agreed with government is just an average price but does not apply to all the grades of tobacco.

Saunders said: "The 1.76(US$) is just an average price which we have agreed to but doesn't mean that each grade of tobacco will be bought at that price. Farmers should concentrate on presenting tobacco which is of good quality and they will get away with good prices."

He assured farmers that they should not expect any problems as they have together with government come to an understanding that will enable a good market for the crop which is the country's major foreign exchange earner.

Minister of Agriculture and Food Security, Dr. James Munthali said the President asked to meet the players in the industry to see how the preparations were ahead of the opening of the buying season next week.

He said Malawians should expect another good season as there was good relationship between the buyers and government.

The minister also said the Integrated Production System had improved the quality of the crop expected this season in the country.

According to Munthali, research shows that there will be about 169 million kilograms (Kg) of burley tobacco, 21 million Kgs of flue cured and 3 million kgs of dark fired tobacco across the country.

The Business Times of Wednesday March 19,2014 reported that authorities had agreed to US$ 1.76 from last year's US$169 per Kg. Flue cured tobacco has been slated for US$ 265 from US$ 263 per kg while dark fired tobacco will be at US$ 210 from US$ 180 per Kg.

The buying season starts with the opening of Kanengo Auction Floors on Tuesday, March 24th then followed by Chinkhoma and Limbe Auction Floors in the subsequent days. Mzuzu Auction Floors will however be opened on April 23. Enditem