Zim tobacco prices stun Malawi growers

Six flue-cured tobacco growers who are part of a Malawi delegation on a study tour in Zimbabwe were on Tuesday stunned over up-to-the roof prices fetching flue-cured tobacco in Zimbabwe.

The farmers were also surprised to learn that banks pay their Zimbabwean counterparts for their tobacco two hours after the commodity had been sold.

The farmers, Janet Chipeni from Kasungu, Kettie Gondwe (Mzimba), Diana Nyambalo (Mangochi), Amidu Aufi (Mangochi), Jabesi Jimu (Dowa) and Sam Shawa (Mzimba) visited Zimbabwe’s three main auction floors of Boka Tobacco Floor, Premier Tobacco Floor and the Tobacco Sales Floor.

At the three auction floors, it was evident that flue-cured tobacco is attracting better prices than in Malawi and spot checks by Business News showed that even at the contract marketing are hitting as high as $5.80 while prices at auction system of marketing flue-cured tobacco, prices are hitting as $4.99 per kilogramme.

“Kodi alimife tiidalakwanji kwathu ku Malawi? Zomwe ndaona kuno ndi zodabwitsa, ngakhale fodya wa mmusi akugulidwa ma five dollars zinthu zomwe kwathu sizingatheke nkomwe.

[What crime did we, Malawian farmers, commit? What I have witnessed here is nothing but a shocker, even low quality leaf is fetching as high as five dollars which is a non-starter in Malawi],” lamented Jimu who comes from Traditional Authority Dzoole’s area.

His outcry was shared by Aufi from Mangochi who had no kind words for Malawi tobacco buyers, whom he accused of reaping where they did not sow.

Aufi asked tobacco buyers in Malawi to offer better prices if the country is to promote the growth of flue-cured tobacco across Malawi.

Malawi only produces less than 20 million kilogrammes and available figures show that the country is poised to realise 16 million of flue-cured tobacco.

Mzimba-based Shawa, who also complained about the disparities in the pricing structure of flue tobacco between Malawi and Zimbabwe, said it was important for Malawi buyers to harmonise tobacco prices of the same variety in southern Africa.

“This could discourage the smuggling of the leaf to outside countries such as Zimbabwe where prices are better off and farmers are carting home millions of dollars,” said Shawa.

In a separate interview with Business News, the Tobacco Association of Malawi (Tama) president Reuben Maigwa echoed his growers’ concerns and said he was also surprised at the gap between flue-cured tobacco prices in Malawi and Zimbabwe.

He said unlike in Malawi, Zimbabwe tobacco buyers are at the heart of improving the welfare of farmers by offering them better prices.

“I have seen that Zimbabwe is another world when it comes to tobacco prices. Even poor tobacco prices which can be rejected at our floors is fetching as high as three dollars. Our buyers must do something on this,” said Maigwa who vowed that as Tama president he will take an initiative to ensure that buyers increase their prices on the market for the rest of the tobacco market season.

Malawian farmers are on a study tour to learn on how best to promote the production of flue-cured tobacco, which is said to be on high demand on the international market, especially by cigarette manufacturers.