Malawi queries Fairtrade premiums

Malawi government on Wednesday queried where premiums realised from the sales of local products sold on Fairtrade international markets go.

Speaking in Lilongwe during the Malawi Fair Trade Network breakfast with Members of Parliament (MPs) and other players, Secretary for Industry and Trade Nebert Nyirenda argued the money is supposed to trickle down to farmers who produce the products.

Fairtrade is a rapidly growing international movement that guarantees a better deal for disadvantaged farmers and workers in the developing world because they suffer from poor market access and unfair international trade rules such as tariffs and rich country subsidies.

“There is the issue of Fairtrade premiums. Where do the premiums go? The expectation is that a good share of the premiums must go back to
the producers of Fairtrade products,” said Nyirenda who added that government is promoting the growing of crops that could be sold on Fairtrade markets,” said Nyirenda.

Malawi Fair Trade Network chairperson Doreen Chanje said for every tone of sugar sold on Fairtrade markets in Europe, $60 (about K15 000) is collected as premium while $150 (about K38 0000) is collected from the sale of every tone of groundnuts.