Tobacco Sales in Limbo at Limbe Floors ---Growers Fault Tobacco Control Commission

Source from:  dailytimes.bppmw.com BY Carol Govati 05:00:43 - 11 April 2006 04/12/2006

Farmers at Limbe auction floors Monday accused Tobacco Control Commission (TCC) of conniving with buyers to dupe them on prices and have since asked government to suspend sales. But Tobacco Control Commission (TCC) while agreeing prices are lower than recommended said most tobacco is of poor quality and ruled out suspension of sales. Speaking on behalf of other farmers, Charles Magombo a grower from Zomba said buyers were not following presidential directives. "This [price] is different from what the President said and it's better to suspend sales and discuss the issue with buyers," Magombo said. President Bingu wa Mutharika directed when he opened tobacco sales three weeks ago the minimum tobacco price be US$ 1.10 and US$1.70 depending on quality. But as of Monday buyers were buying below the recommended price as most tobacco sold at Limbe Auction Floors averaged US$0.60/kg. Tobacco Association of Malawi (Tama) Councillor Denis Dias concurred with growers, saying most tobacco is of good quality but faulted buyers on low prices. "Most tobacco is sent back because buyers are not meeting the required prices," Dias said. Adding: "We suspect these officials [TCC] are corrupted and are not representing our interests." However, TCC Regional Manager Richard Chinthunzi, dismissed grower's claims saying most of the leaf offered was of poor quality. "Inferior tobacco is going at low prices. The problem is that buyers are shunning high quality tobacco." Chinthunzi said. He said suspending sales is not solution, as it would deprive other farmers with good tobacco from selling. Government together with Auction Holdings Limited (AHL) set up Malawi Leaf to buy tobacco at recommended prices but Tama officials said the company is only operating in Lilongwe. Limbe Leaf Tobacco and Alliance One are among the major six tobacco buyers but their officials refused to speak to the press Monday. Tobacco is the country's major forex earner raking in more than 60 percent. Enditem