Mutharika warns tobacco buyers
President Peter Mutharika has warned tobacco buyers against collusion, saying tobacco farmers need to get better prices for their leaf, such a scenario reduces disruptions on the auction floors.
Collusion is a non-competitive secret, or sometimes an illegal agreement, between 
stakeholders who attempt to manipulate prices or disrupt the market. It involves companies or people that would typically compete but who choose to conspire or work together, that way securing an unfair market advantage.
Speaking during the opening of the 2017 tobacco selling season in Lilongwe today, Mutharika said government will be closely monitoring the market to make sure that the season goes on smoothly.
During the opening, some farmers Nation Online interviewed complained about low prices and raised fear that this marketing season will be full of challenges.
“I am not satisfied with the prices being offered today because some tobacco is being bought at 80 cents. Now, if you look at how much time we invest to cultivate this crop, we believe we will incur huge losses. I was expecting the prices to range from $150 to $2 (per kilogramme) on this opening day because the leaf presented today is of good quality,” said Manuel Mandidi.
Alliance One Managing Director Hugh Saunders, in a separate interview, dispelled the fear the farmers had, saying during the opening of any marketing season, there are high expectations.
