Tobacco Prices Raised 20% Above

Published on April 27, 2010 6:43 AM

Prices for tobacco in Malawi, Africa’s biggest producer of the light thin-leaved tobacco, special and rare sort of tobacco crop, doubled an amount of 20 percent more than government decided.
Malawi has a very long history of tobacco, traceable back to the early 1920s. However, firm and rapid increase in production was not seen until the late 1970.

Tobacco production rose to approximately 160 000 tonnes in 2000, which made Malawi one of the ten largest tobacco manufacturers in the world.
For example the tobacco leaf sold for $2.40 per kilogram (2.2 pounds) at Limbe Auction Floors, in comparison with the $2 decided by the government, declared Bruce Munthali, Tobacco Control Commission Chairman.

"I am surprised with the quality of the tobacco leaf and the customers should be praised for proposing above government set prices. We hope this course will go on," added Munthali.
In general, Malawi’s government started putting minimum prices for the several standards of tobacco in 2007, after censuring merchants of applying tobacco growers out of business by proposing farmers lower prices than the government proposed. For example last year, President Bingu wa Mutharika caught four tobacco companies, and accused them of damaging his economic plan.

On this year the commission won’t permit any destruction such as the differences that were met between tobacco buyers and growers in 2009.
"We, as TCC, wish a smooth tobacco market. I would also like to request to all grower groups to help educating our farmers on methods in increasing interests on tobacco prices. Stopping illegal tobacco sales," added Mutharika.

Malawi is a nation of 15 million people. It is one of the worlds least developed, depends on tobacco to produce 60 percent of its export profits. For example, the country produced 215.3 million kilograms in this season, down 7.2 percent from a year earlier.