Tobacco Growers Cry Foul

Source from:  by Taonga Sabola, 05 April 2006 - 05:19:54  04/06/2006

Tobacco sales started on Tuesday at the Limbe Auction Floors in Blantyre with the same old story of growers crying foul over low and unimpressive prices despite improvements in leaf quality compared to last year. Most of the growers interviewed at the market on Tuesday described this year's starting prices as worse than those offered last year. A close look at the market revealed that most of the tobacco bales were going at an average of less than US$1 (about K134) per kilogramme. Kenson Phameya, a tobacco grower from Phalombe, said things looked better at the very beginning but the buyers changed as the market progressed. He said most of his tobacco had gone at the price of US$0.80 (about K107.20) per kilogramme. "The highest price that my tobacco has fetched is US$1.10 (about KK147.40) and I am very disappointed with the way the market has started," he said. Matthews Nantunga of Thondwe Extension Planning Area (EPA) in Zomba had no kind words for the buyers describing them as cheats. "The President [Bingu wa Mutharika] made it clear that no buyer should by below the minimum set prices and we wonder what these people are doing," he said. Agnes Kanyangale from Mangochi concurred with her fellow growers that the prices were poor saying out of the nine bales she had brought to the auction only one had attracted a price above the minimum price while the rest were sold at US$0.70 per kilogramme (about K93.80). "I am afraid with these prices we are not going to get back what we have invested in producing the crop," she said. Mutharika, speaking when he opened this year's tobacco sales in Lilongwe last week, directed that the lowest grade of tobacco should attract a price of not less than US$1.10 (about K147.40) per kg while the top most grade should fetch a minimum of US$1.70 (about K227.80) per kg. But Mutharika's directive was received with resistance from some sections of the buyers. This caused a delay in the starting of sales in Lilongwe last week from Tuesday to Thursday. Tobacco Control Commission (TCC) General Manager Godfrey Chapola said in Lilmbe he was impressed with the quality of tobacco offered on the first day of tobacco sales. "In the past, we have had problems with Limbe but this year the crop looks good," he said. Chapola added that government has been forced to intervene on the issue of poor prices and that nobody will be allowed to buy below the set prices. "Our stand remains that no buyer buys below the minimum prices. We have deployed our official to inspect and check whether all the prices are corresponding with the grade. "Once we are not happy with the prices offered by the buyer, we will not allow the buyer to buy. Tobacco has 76 grades and each grade has its own prices. We will only allow buyers to buy below the minimum set price when the crop falls in the lowest grade," he added. Tobacco is the country's major foreign exchange earner with a contribution of about 60 percent. Enditem