Magufuli opens Malawi tobacco market: Mutharika orders tax exemption for small–scale farmers

President Peter  Mutharika  says tobacco small-scale farmers will be exempted from tax  from their first ten bales of the leaf with immediate effect.

Tanzanian leader Magufuli speaking at the opening of Malawi tobacco market in Lilongwe
President Mutharika accompanied by his Tanzanian counterpart Magufuli visits tobacco auction floors in Lilongwe
Magufuli inpects the tobacco leaf with Mutharika
Mutharika: No tax on first 10 bales of the leaf

Mutharika was speaking Thursday at the opening of the tobacco marketing market for 2019 which was presided by the visiting Tanzanian President John Pombe Magufuli.

The Malawi leader said government always thinks about farmers, investors, and the economy, adding that the economy needs to grow with stability.

In his remarks, Mutharika also said  fertilizer prices will be reduced – apart from the Farm Input Subsidy Programme –  to make sure farmers ably buy necessities for their farms.

He also announced that factories will be established in rural areas for easy market  access for farmers.

Mutharika also said village banks will also be established to increase the access of loans for smallholder farmers.

He further said the Social Cash Transfer Programme (SCTP), popularly known as Mtukula Pakhomo,  will be increased. The programme  targets ultra-poor and labour-constrained households who are getting cash transfers every month.

Mutharika,  who  acknowledged the difficulties arising from the outdated law on the tobacco industry, said the Tobacco Industry Act comes as a reform to the tobacco industry and will protect farmers from selling their tobacco at a low price.

“Malawi’s economic growth is founded on farming and for this reason, our farmers need to be protected,” he said.

Mutharika said government wants to create better regulation for the industry, provide affordable fertiliser for farmers and protect farmers from drought and climate change.

On his part, Magufuli  said agriculture is an integral sector in most of the countries in Africa as it ensures food security, employment, national income and foreign exchange.

However, the sector faces many challenges such as lack of capital for farmers, over-dependence on rainfall, lack of improved farming technology, lack of agricultural inputs and good storage for produce.

Magufuli commended Mutharika for his effort in undertaking initiatives to overcome some of these challenges for example, the establishment of the Green belt initiative.

He also commended Malawi for incorporating other crops in its agriculture sector.

Concluding his remarks, Magufuli expressed satisfaction in the good relations that exist between Malawi and Tanzania and declared the 2019 tobacco market season officially opened.

Expectations are high over the opening of the season as it will boost the country’s foreign exchange reserves, a situation likely to strengthen further the local currency against major convertibles.

The opening of the season also comes at a time the country is bound to yield lower than expected volume of tobacco on the backdrop of ravaging floods that damaged and washed away crops, including Malawi’s major foreign exchange earner, tobacco.

Follow and Subscribe Nyasa TV :

newest oldest most voted
Notify of
Maunits
Guest
Maunits

Maliseche where is the prices, I thought that could be on the headline kkkkkk koma awa ndi Malisechedi mwa. That is your last tobacco market opening with useless and fundoless speech, come 2019 Dr. Chakwera will officially open it with his sound leadership.

Mirella K
Guest
Mirella K

Chakwera is equally a useless stooge who has nothing tangible to offer to malawi. His ascendance to power will just provide the impoverished Eisnower Mkaka’s mana for their bellies. UTM Boma!

gwenenthe mwale
Guest
gwenenthe mwale

PALIBE MAVOTI ALIMI , MUTHARIKA UPAKIRA BASI
DPP IS GOING OUT!!!!!

Adzonzi
Guest
Adzonzi

So the whole country had to wait For Magufuli to tell us to exempt tax for small scale farmers?

Malawiano
Guest
Malawiano

How will you distinguish small scales from the rest?

phillips wanga
Guest
phillips wanga

A move tasted too late for hopeless masses of Bumphula,Kasiya,Tulonkhondo,Kasuza and Mpani villages.

ananveruwa aku veterinary ukoo nsewu wa midima
Guest
ananveruwa aku veterinary ukoo nsewu wa midima

Apatu basi APM wavomereza kumugwadira Chirima because Magufuri ndi mentality father wa SKC ndiye ngati wamuitanitsa Magufuri sibasi wagonjera maganizo amwana UTM Motoooooooooooooo buuuuuuuuuuu

master
Guest
master

and no information about prices

Kochinonda
Guest
Kochinonda

Ng’oooooooooo
Ng’ooooooooo
Ng’oooooooo
DPP SIMUYINYANTHA VOTE YA ALIMI Ng’oooooo vote mwayilephera zaka zonsezi simumatsitsila misonkho or indeed exempting them mukachite lero lokhalokha?? Ng’ooooooo mwalemba mmadzi pitala

Tamiwe
Guest
Tamiwe

Maliseche kufuna kuoneka wabwino, palibe upakila basi………tazunzika ife ndalama ukuba ndi abale ako……

Ndife
Guest
Ndife

Ana opanda makolo mwina makolo anawaza kale ndi tizilombo. Thats why you can’t respect the elders.