Malawi Tobacco Prices Hit U.S $1.84 per Kg

Source from:  Nyasa Times 04/15/2016

Tobacco prices in Malawi hit US$1.84per kilogram as President Peter Mutharika opened the auction floors on Wednesday giving a ray hope of better prices for the leaf this year.

President Mutharika witness Tobacco Auctioning in Progress at Lilingwe Auction Floors to mark the official opening of 2016 Tobacco Marketing Season (C) Stanley Makuti

President Arthur Peter Mutharika witness Tobacco Auctioning in Progress at Lilingwe Auction Floors to mark the official opening of 2016 Tobacco Marketing Season (C) Stanley Makuti

However, Mutharika warned the buyers against giving cosmetic prices on first days of the masket, saying ordinary poor Malawians need to reap from their year- long sweat.

"We want fair prices. Every year we discuss tobacco prices which you implement on first day and abandon later. This year we asked you to come up with the minimum prices which you did and we hope you will not abandon the prices," said Mutharika.

Added Mutharika: "Listen to us, listen to our cries. You have to listen to the plight of our farmers."

He said the government will not sit back and watch as the buyers exploited tobacco farmers saying he would be visiting the markets without any warning or announcements to make sure the buyers stuck to their promises of good prices.

The President also reminded the buyers that the government would not tolerate tax evasions and would severely with such companies involved in tax evasions.

He also advised the farmers to offer good leaf for sale if buyers are to offer good prices saying the 34 per cent rejection rate of tobacco means some farmers continued to sell poor leaf or were still placing objects in their bales to cheat tobacco buyers.

Mutharika also said its high time Malawi diversified its cash crops as tobacco is facing huge challenges because of unreliable weather and anti smoking campaigns.

The President said farmers were labouring more and earning less hence the need to tackle the issues with strong regulation of the tobacco industry to reduce the cost of production and the cost of fertilizer. Enditem