Tobacco sales continue with good prices at Malawi Auction Floors
Government recently decreed that the minimum price for burley tobacco should be US$ 2 per kilogramme, down from US$ 2.15 last year, while the minimum price for flue-cured tobacco was reduced to US$ 3 per kilogramme from US$ 3.9 last year.
On the second day of the sale, a kilogramme of burley tobacco was fetching at least US$2 50 cents, a price which is above the government’s set minimum price of 2 dollars.
Bruce Munthali, Tobacco Control Commission (TCC) Chief Executive Officer, said he was optimistic that this year’s season would be more successful than the previous ones.
Munthali observed that “low quality leaf was attracting good prices”, a development which he said was not the case last season.
The TCC’s Chief Executive Officer added that “t
he number of rejected bales is likely to decrease as competition among buyers is high due to low production of the leaf this year”.
But farmers were cautious saying it was too early to start celebrating considering that buyers have been unpredictable in the past few years.
Meanwhile, TCC has intensified its preparations for the opening of the Limbe Auction Floors on Wednesday
Tobacco is Malawi’s chief foreign exchange earner which accounts for over 30 per cent of the country’s Gross Domestic Product and contributes up to 23 per cent in all tax collections.
More than 75 per cent of all foreign exchange earnings is derived from tobacco. And, more significantly, at least 80 per cent of Malawians directly and indirectly depends on the tobacco industry.
we need to support this industry, we should smoke more and we should also have tobacco for that this which is flavoured. and is smoked in arab nations and some pubs.
we should also give credit to nyasa manufacturing company they are helping out this country. and boosting the price and adding value
Its your time farmers, mukwatire awiri awiri tsopano.Paja you are fond of buying crates of beer yet mulipo atatu mumwa bwanji? heeeee Obambo tiwona.
No matter how hard we preach about the dangers of smoking, Tobacco will remain the livelihood of many Malawians. These days everything kills even the food we eat, the water we drink, alcohol, cocacola, coffee the list is endless. Lets put Malawi on the world map by producing and producing a lot of the Cash crop. Am happy for all the Tobacco farmers. By the way how old was your grandpa who smoked like a goods train all his life when he died? Over 80 yes he lived to his ripe old smoky age.
Perhaps too early to start celebrating. Remember the year prices went as high as $11 per kg on first day? I still don’t trust the buyers. They always seem a step ahead of us in their strategies.
Come the last auction day, we are all crying pyoo!
Are you sure its $2.50?
Most people (inc reporters) seem to struggle with the concept of the word average – The famous $11 was for one bale or less than 0.01% of a normal days sale. Its the same with the $2.50 mentioned here – Its only for a few good quality bales – The actual average for the entire day is more like $1.60 right now – check with the auction floor where it is displayed for all to see if you dont believe.