Malawi: JB for New Cigarette Manufacturing Companies

Source from:  Malawi News Agency  03/26/2014

President Dr. Joyce Banda on Monday disclosed government's intention to bring in the country tobacco cigarette manufacturing companies as a way of boosting market for the crop.

While opening the 2014-2015 tobacco buying season at Kanengo in Lilongwe, Dr.Banda said by manufacturing cigarettes, the country would attract both the indigenous and international buyers thereby increasing demand for the county's major forex earner.

"I have always wondered on how we can improve on our tobacco sales and the immediate answer which came in my mind is the need to add value to our crop, but now the question was how to do that.

"I am pleased today to inform the public that my government is negotiating with some cigarette manufacturing companies to come and open their branches here in Malawi and very soon we will see them coming in the country," the President said.

Dr. Banda then advised farmers to improve on their production in readiness for the booming market.

On the Anti- Smoking campaign being championed by the World Health Organization (WHO), Dr. Banda said she was aware of the restrictions and that government was working on various modalities.

She disclosed that government would further base the decisions on the crop market demand.

"The anti-smoking lobby poses a threat to our future; however, we really need to search for the possible impacts on tobacco production," she said.

Meanwhile, Banda has appealed to farmers in the country to diversify crop production to maximize their profits.

Sales for this year's tobacco season started on a high note with some farmers selling the crop at as high as U$2.90 per Kilograme.

Auction Holdings Limited Board Chair, Mbelwa V said it is the expectation of the holdings that tobacco production will increase as a result of the farm subsidy programme as well as the loaned fertilizer which government was giving at interest-free rate. Enditem