TCC says Malawi Kwacha gain setback in tobacco selling

While some economic commentators describe it as a positive, Tobacco Control Commission (TCC) says the appreciation of the Malawi Kwacha against the dollar is a negative for tobacco farmers in the ongoing tobacco selling season.

Dr Bruce Munthali TCC CEO speaking to the press after opening the  Chinkoma aucttion floors in Kasungu

Dr Bruce Munthali TCC CEO speaking to the press after opening the Chinkoma aucttion floors in Kasungu

Inkosi Ya Makosi M'mbelwa Five  speaking at Chinkhoma auction floors

Inkosi Ya Makosi M’mbelwa Five speaking at Chinkhoma auction floors

The kwacha is trading at K441.803 against the US dollar as of Friday in the country’s commercial banks, Nyasa Times found out.

TCC board chairperson Inkosi ya Makosi M’belwa V said the phenomenon is “complex” because farmers buy farm inputs when the currency is at a depreciated rate and when time to sell comes the kwacha appreciates.

He said at Chinkhoma Auction Floors in Kasungu where he accompanied agriculture minister Dr. Allan Chiyembekeza for the inauguration of this year’s tobacco marketing season.

M’belwa said, as a result, farmers are being driven into the oblivion of poverty, therefore, not reaping from their investments.

“Also, our farmers are charged highly on farm inputs and I’m asking our tobacco buyers to address this problem in order to lessen the burden of or farmers,” he said.

Chiyembekeza corroborated M’belwa’s sentiments saying his ministry is always open to hear from farmers.

He also urged farmers to avoid being “violent whenever differences on pricing issues arise.”

In a separate interview with Nyasa Times, TCC Chief executive officer Bruce Munthali said the floors had opened on a good note.

“Buyers are buying the tobacco within the set prices,” he said.

The minimum set price for Burley tobacco is 85 cents but during the opening day the lowest bale fetched US$ 1.35 per kilogram while the highest sold at US$2.10 per kilo.

Malawi is an agro-based economy and tobacco, also referred to as the green gold in Malawi, is the country’s main forex earner.

President Peter Mutharika has expressed commitment that his government will further intensify the promotion of agricultural diversification for farmers to gradually start switching from tobacco to other economically viable enterprises.

Apparently, Mutharika’s direction is in line with recent calls by anti-smoking campaigners.

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ngala mountain
Guest

Bruce Munthali ndi amene amauza aZUNGU kuti azigula alimi pa mtengo wotsika kumanamizira kuti kwacha yakwera mphamvu .Munthu woipa ameneyu adzafa imfa yowawa musiyeni .Nthawi zonse ali minimum price ndi $0.85 .osawasiya a zungu kuti agule fodya pa mtengo umene akufuna ,koma chi Munthalichi kuchita kuwaletsa azungu kuti asadutse $2.10 .Ife tidzangosiya kulima fodyayo tiwone udzasowe omuzunza.Tatopa ndikubweredwa.koma tikati tikagulitse fodya ku Zambia kumene kuli mitengo yabwino mumatilanda fodya tisiyeni tikagulitse fodya wathu pa $8.50 KU zAMBIA KUMENE SABWERA ALIMI STUPID Munthali

Maxwell Nsani
Guest
People, There is no tsamunda dictating our kwacha fluctuations as the others have said. its simple demand and supply. Play your role in making the diversification mantra come to reality, that way the appreciation of the kwacha does not only happen during the tobacco selling season. Encourage more tea, coffee, paprika, and many others after the tobacco market or along side it, so that we do not have a forex drought annually after the tobacco season is over. This is what Bingu used to call `…a basket of products`. Some of the current ministers were there when he used to… Read more »
kadokera
Guest

Bruce umangodziwa kutumidza abale ako ku Taiwan and China for fake degrees, athandize alimi a fodya.

james
Guest

Njira ya bwino alimi azigulitu zipangizo nthawi yomweyo akugulitsa fodyayo.

Kennedy nali
Guest

Chamba, mukukhumba kubela walimi eti? Kweni vyiru ku malawi kwali ine. Chiuta wamulangeni nakuba kwinu.

chinkombaleza gumanyundo gowa
Guest
chinkombaleza gumanyundo gowa

A malawi ena ndi obvuta. Kuti Kwacha igwe ayambanso ndi iwowo kudandaula chabwino ndi chiti? Mukufuna President atani. Anzanu tikukondwera kwacha ikamamera mizu.

malawiana
Guest

We have been hearing this story of diversification for ages now and no progress on the cards. Reason is that the government departments responsible are technically dead with no vision. Agriculture extension services are dead, departments of SMEs and Industry at Ministry of Trade died long time ago. So who is going to champion this diversification? The President?

point blank
Guest

It looks like Malawians are beginning to get back to their senses or the noise makers were a political party sect. I remember during the same period last year all insults went to the President. But today people are making reasonable comments if they’re not being partisan. Learn to understand dynamics of trade.

soko
Guest

chaka china alimife tidzangopangane osalima fodya. Tidzavutika koma boma lidzagwa. Aliyense amene akufuna kugula katundu kunja nyengo yake ndiino alimi osauka omwe alima fodya zaka 20 koma alibe ngakhale nyumba abweretsa dollar yotchipa. U can fool people some of the time, not always

Mchikumbe #5
Guest

The problem in Malawi is that we have a Tobacco ControLLED Commission not a Tobacco ControL Commission!

wpDiscuz

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