Tobacco sales opened at Limbe Floors in Blantyre yesterday with farmers forcing the market to close twice after protesting against low prices that ranged from $1.15 (about K2 013)to $3.20 (about K5 603) per kilogramme (kg).
Despite the farmers’ protests, Minister of Agriculture Sam Kawale, who officially opened the market, and Tama Farmers Trust, the largest grouping of tobacco growers, maintained that the prices are fair and competitive.
At the auction market, the lowest offered was $1.15 (about K2 013) per kg while the highest was $3.20 per kg, prompting farmers to protest and forcing the market to close.
On the contract market, the lowest price offered was $1.40 (about K2 451) per kg while the highest was $3.25 (about K5 690) per kg, but farmers expressed dissatisfaction with the prices, saying they are not in tune with the rising cost of production due to rising cost of fertiliser, chemicals and labour, among others.
Speaking in an interview yesterday, Phalombe-based farmer, Fylod Kalama, who brought 17 bales to the floors, said he was disappointed that despite being on contract, the prices are not promising.
He said: “This year was extremely tough because apart from rising cost of inputs, we had to venture into irrigation to support the crop as we did not have enough rains.
“Buying tobacco at below $2 per kg is an indication that these circumstances were not taken into consideration.”
On his part, Zomba-based farmer Fergus Banda, whose tobacco was bought at $1.45 (about K2 538) per kg, said he will have to withdraw his bales because the prices are not what he expected.
“I cannot allow this to go on, the prices are disappointing,” said the visibly angry farmer.
Despite the protest from individual farmers, Tama Farmers Trust president Abiel Kalima Banda said the market has started on a good note and blamed those complaining about prices for disregarding critical production issues.
“Let us not give buyers a bad name due to our poor grading. But we hope buyers will go through the prices again to reflect on production cost, which was higher,” he said.
On his part, Agricultural Research and Extension Trust chief executive officer Albert Changaya said yesterday that while prices in dollar terms are six percent higher than last year, poor grading and presentation at the floors is impacting on prices.
In his speech, Kawale said government’s policy on quality remains unchanged, highlighting that while good tobacco will be rewarded, bad tobacco will be rejected to keep the integrity of the tobacco market.
Tobacco remains the main foreign exchange, contributing about 60 percent to foreign exchange earnings and 13 percent to the economy.
Tobacco prices have remained a sticky issue over the years.
