Boycott in Malawi

Source from:  tobaccoreporter.com Wednesday, March 29, 2006 03/30/2006

International tobacco buyers boycotted Malawi auction floors on opening day Tuesday to protest President Bingu wa Mutharika's imposition of minimum prices, reports Reuters. President wa Mutharika imposed a minimum price of $1.10 per kg and $1.70 for higher grade leaf. For the last several years, minimum prices have been around $0.70 to $0.90 per kg for lower grade tobacco, and $1.20 for higher grades. On Monday, wa Mutharika threatened exploitative tobacco buyers with expulsion from the country and arrests if they do not buy tobacco at prices fixed by his government The Chronicle Newspaper reported. Buyers maintain that the prices should be dictated by supply and demand. Enditem