Tobacco processing and buying companies say they would consider importing the leaf from neighbouring countries to meet supply gaps in their processing plants.
Tobacco Commission (TC), the country’s tobacco regulatory authority, has said it has no
problem with the arrangement provided it is done in line with the laws.
Speaking in an interview in Lilongwe yesterday on the sidelines of the Tobacco Industry Conference, Tobacco Processors
Association chairperson Moffat Hamilton Gama said the decision to import the leaf will be at the discretion of individual processing companies.
“Companies should make those decisions based on their cost base because they would have to pay fees stipulated in the Tobacco Industry Act.”
The Act gives the Minister of Agriculture the power to prescribe import fees.
Gama said processors can mitigate the supply gap caused by erratic weather patterns by getting accurate weather forecasts.
TC board chairperson Godfrey Chapola said in an interview the regulator would allow imports, but stressed that it would have to be done in line with the country’s laws and import controls.
“The industry has to operate within government policies. There are certain aspects which are governed by legal instruments and as a regulator, we have to make sure that these are adhered to,” he said.
Ministry of Agriculture director of crop development Elida Kazira urged farmers to deliver high-quality and well-graded tobacco.
“They should avoid adding foreign materials because it undermines the integrity of the country’s tobacco on international market,” she said.
Tobacco farmers have historically failed to meet the buyers’ demand for the leaf, which contributes between 40 and 50 percent to the country’s foreign exchange.
Last season, farmers produced 133 million kilogrammes (kg) of tobacco, which was below the buyers’ demand of 190 million kg, largely attributed to the erratic weather patterns caused by El Nino.
Similarly, in 2021/2022, season, TC licensed farmers to grow 162.8 million kg against 140 million kg demand, but the output was recorded at 123.6 million kg.
In the forthcoming season, tobacco buyers have put demand for the crop at 213 million kg, a feat Tama Farmers Trust says will be difficult to achieve due to capacity challenges.
In an interview on Tuesday, Tama Farmers Trust chief executive officer Nixon Lita said it is doubtful that production can jump from 133 million kg last season to over 200 million kg because of ongoing capacity challenges.
TC has this season licensed 54 370 farmers to grow 238.9 million kg of tobacco. The registration period closed on October 31
In the last season, the country raked in $396.9 million (about K694.9 billion) from tobacco at an average price of $2.98 (K5 217) per kg, a rise from the previous season’s $282.1 million (K494 billion) at average price of $2.14 (about K3 747) per kg.
In 2021/2022 season, the country earned $197 million (about K344.9 billion) at an average price of $1.59 (about K2 784) per kg while in 2020/21 season, the country realised $195 million (about K341.4 billion) at an average price of $1.60 (about K2 801) per kg.
Tobacco still remains the country’s main foreign exchange earner and contributes about 13 percent to the country’s gross domestic product.
The crop continues to face worldwide anti-smoking pressure due to concerns on health.
In August last year, Malawi ratified the World Health Organisation Framework Convention on Tobacco Control, joining a community of 182 other parties to the convention
