Malawi tobacco growers cry foul over low prices
Tobacco growers in the Northern Region have bemoaned poor tobacco prices their leaf is fetching at the auction floors.
Speaking on Tuesday, the growers said it is surprising that though their leaf is of good quality and well graded, the prices are not improving.
One of the farmers Malola Nyirenda from Njuyu Extension Planning Area (EPA) said the highest his leaf has fetched is $2.40.
“I have made losses as a tobacco grower this year, I don’t know where I will get the funds to service loans and pay tenants,” he said.
During a familiarisation tour at the Mzuzu Action Floors on Tuesday, Agriculture Minister Allan Chiyembekeza concurred with the growers that the pricing is low though some of the leaf is of good quality.
He attributed this to nesting (a process where growers mix good and poor quality leaf).
“I have also noted that leaf on contract is of good quality and being sold at a higher price than the one on auction which is of poor quality,” he said.
He pleaded with the growers to avoid nesting for tobacco prices to improve.
“As a country we rely on tobacco as the main foreign exchange earner as well as source of employment; hence I urge you growers to produce good quality leaf to fetch high prices,” Chiyembekeza said.
The minister also called on the growers to plant trees, if they are to stay in business for long.
However, in an interview after the tour, growers who were not given a chance to address the minister said they would have loved if they presented their issues to the minister themselves.
Addressing the growers, Tobacco Control Commission (TCC) chief executive officer Bruce Munthali attributed the low prices to decrease in competition of buying companies apart from compromised quality due to nesting.
Munthali, however, said in the 20th week of sales, 168 million kilogrammes(kgs) of leaf has been sold, attracting $310 million.
“We are hopeful that by the end of season, we will sell 180 million kilogrammes,” he said.
In 2013, the country sold 168million kilogrammes fetching $361.7million while in 2012, 80 million kilogrammes were sold earning $177million.
