PANAPRESS
Panafrican News Agency
Malawi tobacco prices drop as Mutharika inaugurates tobacco market season
Blantyre, Malawi (PANA) - Malawi President Bingu wa Mutharika on Monday inaugurated this year's tobacco-selling season by calling on buyers to offer farmers good prices.
However, minimum prices are down compared to last year's marketing season.
"This year, we have had very good rains and with good care of the crop, we are sure of getting more revenue," Mutharika said.
"Growing tobacco is hectic and very demanding. That is the reason why I suggested that we should have a minimum price for tobacco. I did this because I wanted farmers to get enough profit, which would eventually help them buy enough inputs for the next growing season."
Last year Mutharika, who dubbed tobacco buyers as "neo-colonialists out to cheat Malawian farmers", ordered that barley tobacco should not be sold under US$2 a kilo, while flu-cured tobacco should be sold at US$3 a kilo.
Northern Dark Cured tobacco went at US$2.14 a kilo.
However, according to Tobacco Control Commission (TCC) General Manager, Dr. Bruce Munthali, due to a drop in demand on the global market because of the anti-smoking lobby, minimum prices have been reduced.
"We have to maintain the country's competitiveness compared to what others are offering in the region," he told journalists.
Under the new minimum prices, burley tobacco will be going at US$1.80 a kilo, flu-cured tobacco US$ 2.82, while the minimum price for Northern Dark Cured tobacco has been maintained at US$ 2.14.
Last year, Malawi sold 2.7 million kilos of tobacco, which fetched US$ 416 million.
Tobacco is Malawi's chief foreign exchange earner. It contributes up to 75 per cent of the country's forex as well as 23 per cent in tax collections.
No fewer than 80 per cent of Malawians depend on tobacco either directly or indirectly.
Dubbed Malawi's "green gold", tobacco contributes up to 30 per cent of the southern African country's Gross Domestic Product (GDP).
-0- PANA RT/BOS/MA 14March2011
However, minimum prices are down compared to last year's marketing season.
"This year, we have had very good rains and with good care of the crop, we are sure of getting more revenue," Mutharika said.
"Growing tobacco is hectic and very demanding. That is the reason why I suggested that we should have a minimum price for tobacco. I did this because I wanted farmers to get enough profit, which would eventually help them buy enough inputs for the next growing season."
Last year Mutharika, who dubbed tobacco buyers as "neo-colonialists out to cheat Malawian farmers", ordered that barley tobacco should not be sold under US$2 a kilo, while flu-cured tobacco should be sold at US$3 a kilo.
Northern Dark Cured tobacco went at US$2.14 a kilo.
However, according to Tobacco Control Commission (TCC) General Manager, Dr. Bruce Munthali, due to a drop in demand on the global market because of the anti-smoking lobby, minimum prices have been reduced.
"We have to maintain the country's competitiveness compared to what others are offering in the region," he told journalists.
Under the new minimum prices, burley tobacco will be going at US$1.80 a kilo, flu-cured tobacco US$ 2.82, while the minimum price for Northern Dark Cured tobacco has been maintained at US$ 2.14.
Last year, Malawi sold 2.7 million kilos of tobacco, which fetched US$ 416 million.
Tobacco is Malawi's chief foreign exchange earner. It contributes up to 75 per cent of the country's forex as well as 23 per cent in tax collections.
No fewer than 80 per cent of Malawians depend on tobacco either directly or indirectly.
Dubbed Malawi's "green gold", tobacco contributes up to 30 per cent of the southern African country's Gross Domestic Product (GDP).
-0- PANA RT/BOS/MA 14March2011
