Tama, TC upbeat on tobacco sales
Tama Farmers Trust, the Tobacco growers and Tobacco Commission (TC) expect better prices to continue in the second week and that will remain so for the rest of the season because of high demand for the gold leaf.
Since the tobacco marketing season opened at Chinkhoma Auction Floors in Kasungu District on Monday April 15, the average price has remained at $2.54 (about K4 447) per kilogramme (kg).
So far, the maximum price for the green gold has been as high as $3.11 (about K5 445) per kg according to Tobacco Commission TC which said 10 buyers are participating creating competition, to farmers’ advantage.
This has boosted growers’ hope as some thought the first week’s tempo was merely due to buyers’ respect to authorities who were present during the opening of the said three markets.
In an interview, Tama Farmers Trust chief executive officer Nixon Lita said impressive prices in week two are cementing their hope that the prosperous season lies ahead.
He said: “Prices continue to be impressive with the market in its second week and we believe this will continue up until the last day of sales of the season.
“The crop is in short supply globally thus giving farmers’ hope that the supplier will benefit.”
However, Lita has advised growers to ensure they adhere to all quality assurance procedures for their leaf to attract better prices stressing that buyers would go for quality even if demand is higher than supply.
“Farmers should present well graded leaves. Need to adhere to recommended Agricultural labour practices like avoiding child labour and deliver their tobacco using trusted means to avoid tricksters who might steal their tobacco,” he said.
In a separate interview, a large scale tobacco grower Abiel Kalima Banda, who is the current president of Tama Farmers Trust was particularly impressed to see rejection rates at zero, a feat which has never been seen in recent years.
He said: “Since the market started, rejection has not been seen, the main reason buyers reject some tobacco is poor grading but it is not likely to happen this season because we properly taught farmers on how to grade their bales in coordination with the buyers.”
Meanwhile, TC board chairperson Godfrey Chapola said even officials of the commission are excited with the trend, saying it has been a practice for the high prices to dominate on market opening day.
“But what this tells us is that if buying companies continue offering good prices this year, our farmers will be motivated to produce more, thereby helping us meet the trade demand which this year we will not be able to meet.
“We need to motivate our farmers even more because we cannot afford to be supplying less than what is on demand.”
He said TC has projected production of 140 million kg yet buying companies are looking for about 190 million kg.
The tobacco season which started on 15 April is expected to run for 17 weeks to finish on 4 August according to TC.
During the 2023 tobacco marketing season, the country earned $282.62 million (about K495 billion) after selling more than 120 million kg of the leaf at an average price of $2.35 (about K4 114) per kg.
