JTI calls for reforms in Malawi tobacco sector
JTI Leaf Malawi Limited which started its operations in Malawi in 2009 after it acquired Africa Leaf Limited has called for a comprehensive market reforms in the tobacco sector which it says would create a win-win situation between tobacco buyers and growers.
The company has also called for speedy review of the Tobacco Act as one way of attaining meaningful reforms in the tobacco sector.
JTI Leaf Malawi managing director Fries Vanneste, who assumed office in February 2014, made the call this week in Lilongwe during a tour of JTI office by new Minister of Agriculture, Irrigation and Water Development Allan Chiyembekeza.
“It is encouraging to note Honourable Minister that your government has taken a bold step to carry out reforms in government. It is our belief that these reforms will extend to the tobacco industry considering the importance of the industry to Malawi’s socio-economic development,” he said.
Vanneste hailed government for gazetting the Integrated Production System (IPS) policy which he said will help in the development of the tobacco industry.
He also called for the need by government to revamp the grower registration process in tobacco farming.
“Without a good and reliable grower registration system, the problems that have consistently plagued the industry like side selling, loan delinquency and the lack of traceability will continue to prevail,” he warned.
He said realising the importance of revamping of the registration process of tobacco growers, JTI Leaf Malawi will support the Tobacco Control Commission (TCC) in grower registration process.
Vanneste said the JTI Malawi thinking is that registering growers is one step towards addressing issues of quality of the leaf which has been an ongoing concern among the buyers.
“This exercise will help curb the proliferation of vendors or more commonly known as intermediate buyers posing as tobacco producers at the auction floors. The tobacco industry is a critical industry to our economy and it needs safeguarding.”
According to Vanneste, the combined positive effects of a good grower registration system and a robust legal framework that underpins the IPS reforms in the tobacco industry and streamlined institutions in the tobacco value chain would be key to an efficient tobacco sector.
“Since 2009, we have been running the Facilitated Farming Scheme. Through the system, JTI has been providing to contract growers farm inputs and the results from the system have been encouraging,” he said.
On his part, Chiyembekeza welcomed JTI Malawi’s calls and instructed TCC to embrace its regulatory function in totality so that the issues raised by JTI are mainstreamed in the tobacco industry.
