Opening Prices Shock Tobacco Growers in Mzuzu

Source from:  by Francis Tayanjah-Phiri, 25 April 2006 - 06:00:18  04/26/2006

Opening prices offered by buyers during the opening of this year's tobacco sales at the Mzuzu Auction Floors shocked many growers who stressed that the situation was worse than last year. Tobacco Association of Malawi (Tama) president Albert Kamulaga and most growers interviewed, openly said they were bitter with the low prices offered. They said the prices did not match the high quality tobacco offered. "In my own view, the prices are lower than last year. Good tobacco is not fetching what it is worth, and this is very disappointing. Good leaf is being victimised, the market has been down because usually when the Mzuzu Floors open, the prices pick up, which is not the case this year," he said. Some of the farmers summoned Tobacco Control Commission (TCC) board chairman Andrew Mzumachalo and TCC General Manager Godfrey Chapola to immediately act on the low prices. "We [growers] invest a lot in caring for tobacco, yet we reap less than 140 US cents for good tobacco, which is day-light robbery," said Khinda Chikoma, a grower from Kasungu, selling on the day. The growers were also suspicious that some buyers were mostly refusing to buy good and well presented tobacco at an offered price of 140 US cents. Most tickets marked 140 US cents and above were cancelled and re-offered, after buyers on the sale offered lower prices. But Chapola told the growers that TCC, on behalf of government, would not allow good quality tobacco to be sold at a price that was lower than its worth. "Concerns of the farmers are genuine. We are not happy with the prices. We are taking action, but I cannot tell you what we will do," he said in an interview. Chapola also noted that most of the tobacco which they allowed to be bought at 80 US cents, 70 US cents or below was of inferior grades and quality. Limbe Leaf Tobacco Company Managing Director Charles Graham—who is also Tobacco Exporters Association of Malawi chairman—said the quality presented at the Mzuzu Floors on the opening day was encouraging. On complaints of prices by the growers, Graham said any grower was entitled to his or her opinion, but the buyers were paying what they could afford to pay in compliance with quality. "I think the prices are reasonable. I plead with the growers to be patient as the market develops since at the moment we are buying mostly lower (leaf) tobacco," he said. Enditem