TC extends tobacco growers registration, licensing period

Tobacco Commission (TC) has extended the tobacco registration and licence period for the 2022/23 growing season to the end of this month amid a low response from growers.

The exercise, which started in June, was expected to end on September 30, but will end on October 28 following one-month extension.

In a statement on Friday, TC public relations officer Telephorus Chigwenembe said the move will enable more farmers to get their licences and register to grow the crop, which is touted as the country’s main foreign exchange earner.

He said: “The commission has established that some growers still have not come for the exercise because they do not yet have enough money for fees which is about K14 per kilogramme [kg] for their leaf.

“We, thus, want to incorporate everyone; hence, this move to help those who may be facing financial challenges to mobilise resources for the exercise.”

Chigwenembe did not indicate how many growers have registered this far, but according to data, TC had as at September 1 licensed 89 million kg of tobacco against the 140 million kg buyers’ demand for the 2022/23 season.

Tama Farmers Trust president Abiel Kalima Banda is on record as having said that the registration exercise has cost farmers money for travel and discouraged others from tobacco farming.

Malawi has in recent years been expected to supply up to 140 million kg of tobacco to the international market, but production has been falling short for the past three seasons.

In 2020 and 2021, the country produced 114 million and 123 million kg of tobacco, respectively while in the 2022 season, the country produced 86 million kg.

This year, the country realised roughly $180 (about K184.3 billion) from 89 million kg of tobacco.

In the 2021 marketing season, cumulatively the country earned $197.1 million (about K204.1 billion) from 123.7 million kg of tobacco with the seasonal average price of all tobacco types at $1.59 (about K1 647.24) per kg compared to $1.53 (about K1 585.08) per kg recorded during the same period in 2020. Tobacco roughly contributes about 60 percent to the country’s foreign exchange earnings and 13 percent to the economy.