Tama urges govt to fight exploitation of growers
Tobacco Association of Malawi (Tama) has said exploitation of farmers by buyers, transporters and vendors coupled with government policies remain a big challenge to the tobacco industry.
The country’s largest tobacco growers association has since called on authorities to address the concerns that have the potential to dent the industry that brings in foreign exchange earnings.
Speaking during the launch of 2015 Tama area meetings at Mpherembe in Mzimba on Saturday, Tama president Reuben Maigwa said farmers, who are the main players in the tobacco industry, do not benefit because other players take advantage of them.
He said despite farmers producing good tobacco, buyers continue to offer growers low prices that do not reflect the efforts farmers put into the production of the leaf.
“We pump in a lot of money to produce tobacco. Farm inputs are expensive and production requires a lot of labour, but when we get to the market we are offered poor prices,” said Maigwa.
He said transporters also charge exorbitant rates and some exaggerate distances, which results in farmers earning little from their efforts.
Maigwa also lamented the floating exchange rate regime, which he said works to the disadvantage of farmers as the kwacha gains value during tobacco market season and loses as soon as the sales close.
The Tama official asked authorities to address the challenges so that growers also benefit from their sweat, arguing that failure to look into such issues tempts some to sell tobacco to vendors who in turn smuggle it to other countries, resulting in Malawi losing foreign exchange.
Tobacco Control Commission (TCC) technical operations manager Frederick Kamvazina said there is need to review some of the things to ensure that farmers benefit from their efforts.
He said the criterion for transport cost will have to be changed, adding that from this season, transporters will charge depending on weight and distance and not just charging the bale and distance.
Kamvazina said Auction Holdings Limited (AHL) delivery note will also be indicating the place where the tobacco has been transported from to avoid exaggeration of distances.
Kamvazina said the tobacco regulator will start registering transporters to ensure that they are easily traced in cases where tobacco goes missing or gets damaged.
