Malawi’s low production of burley tobacco has forced the auction floors to close sales much earlier than is usually the case. Tobacco Control Commission (TCC) General Manager Godfrey Chapola confirmed that July 20 will be the last day of sales for burley tobacco at Limbe and Lilongwe Auction Floors because the leaf has run out. Tobacco sales in the country usually wrap up around October/November.
“It is true, there is no more burley tobacco on the market. Other floors may also close earlier than is the case for burley because there is low quantity,” Chapola explained. He said the other sales, like of dark-fired tobacco, would still proceed until all the leaf is sold.
According to reports, tobacco farmers abandoned the crop en masse following the poor prices that were offered during the last growing season. Statistics from TCC indicate a drop in production from 158 million kilograms last year to 141.9 kilograms this year. But international buyers are demanding an output of 170 million kilograms.
The buyers are looking for 159 million kilograms of burley tobacco, the main leaf generally grown by the country’s smallholder farmers, but only 114 million kilograms have been offered.
“Last year prices were disappointingly low and quantities were bigger but this year prices are very good but with lower quantity. However, this will not affect the foreign earnings,” Chapola said.
This year auctioning at all the three floors; Limbe, Lilongwe and Mzuzu, started late due to wrangles over prices. President Bingu wa Mutharika had to intervene and threatened to deport all buyers who would offer low prices.
Tobacco contributes over 60 percent of the country’s total foreign exchange earnings, followed by tea.
Nyasa Times
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