Malawi tobacco growers angry with low prices
Tobacco growers have this week expressed dissatisfaction over prices fetching the leaf, four weeks into the 2014 tobacco marketing season.
Speaking in random interviews at the Lilongwe Auction Floors and Chinkhoma Auction Floors in Kasungu, the growers were reacting to the average prices that both flue-cured and burley tobacco-have fetched since the market was opened in Lilongwe on March 24 2014.
The analysis simply shows that prices for both burley and flue-cured tobacco——both on auction and contract— have decreased compared to the first four weeks of trading in 2013.
According to the Tobacco Control Commission (TCC) analysis, which Business News has seen, national average price for all types of tobacco in the first weeks was $1.29 as compared to $1.37 during the same period last year, representing a six percent decrease.
During the period, according to the analysis, average price for burley tobacco was $1.28 compared to $1.35 last year, representing a five percent decrease.
Flue-cured tobacco average price also plunged to $2.11 as compared to $2.68 last year.
“I sold all my burley tobacco last week Tuesday and at an average price of $1 which is way below what I expected. Although I haven’t made a loss, but I am disappointed because I will be unable to finance some of the inputs that I planned for the next season,” said Makomu Kalimmanja, a grower from Bua in Kasungu.
His outcry was echoed by Ponde Yotamu, a burley tobacco grower from Traditional Authority (T/A) Chitukula who accused both tobacco buyers and government of sabotaging tobacco growing in Malawi by offering low prices.
Speaking to Business News on Wednesday, Central Region Tobacco Growers Association (CRTGA) president Ernest Chadzunda said he is receiving many complaints over low prices but was sure that prices will pick up as the market progresses.
“Ngakhale sindinapiteko kunsika wa fodya sabata ino, koma ndikumalandira madandaulo kwa alimi athu kuti mitengo siili bwino.Komabe pali chiyembekezo choti zisintha kutsogoloku: [Although I haven’t witnessed the sales this week, but I still receive a lot of complaints from our members over low prices. I am optimistic that prices will pick up],” said Chadzunda.
Commenting on the general performance of the market so far, TCC chief executive officer Bruce Munthali on Tuesday said tobacco volume at the Lilongwe Auction Floors has picked up which he said is healthy for the tobacco industry in 2014.
“So far, the market has been stable and the leaf is well managed. But normally poor leaf characterises early days of marketing as the leaf comes from vendors but prices will pick up,” he said.
Last year, the country sold 168.6 million kilogrammes of tobacco as compared to 80 million kilogrammes sold in 2012, representing a 111 percent increase.
According to available statistics, tobacco——although facing external negative shocks such as the anti-tobacco smoking campaign——is employing 12 percent of Malawi population and also contributing 13 percent of Malawi Gross Domestic Product (GDP).
