Malawi tobacco volumes increases at auction floors
Minister of Agriculture Irrigation and Water Development, Joseph Mwanamvekha has been impressed with increased volumes of tobacco at Auction floors as compared to last year’s marketing season.
He said this Friday when he made a surprise visit to Lilongwe Auction Floors and Alliance one factory inKanengo.
He said as of May 16, 2018 the floors had received 48.7 million kilogrammes (Kg) of tobacco as compared to 23.9 million kg of tobacco during the same period of tobacco marketing season
Mwanamvekha said despite the increase in volume of tobacco, farmers are supplying the marketswith good quality tobacco.
“I am impressed with what I have seen at both places and farmers seem to be taking care of their tobacco as evidenced that there few reported cases of non-related tobacco substance being found in the tobacco bales at the markets,” the Minister noted.
He said the country has gained in foreign exchange earning saying the sales so far has fetched US$ 70.1 million since the opening of the market on April 9,2018.
Mwanamvekha said the foreign currency earning now stands at 66 per cent and hoped the trendwould continue for the better.
“there not burning issues at the floors now as it is used to be in the past. Buyers are offering better process to the farmers and this is an encouragement to the tobaccos industry,” he stated.
He said the average price is perched at US$ 1.58 per kg which is far much better as it used to be in the past season where buyers were buying it at US$ 0.80
Mwanamvekha said since the sales are moving for lower to middle leaf chances are that the pricemight go up due to the quality of the leaf.
“The issues of reoffers stand at 18 per cent as results mix grading, non-tobacco relatedsubstances and high moisture content but we are hoping things will be better in this year’smarketing season and farmers will reap their benefit from the industry,” the Minister sounded.
He disclosed flue cured tobacco has fetched highest price of US$ 3 per kg and barley tobacco atUS$ 2.60 per kg as high price on the current market.
Managing Director of Alliance one Limited and Tobacco Processor Association of Malawi,Hugh Saunders thanked government for showing interest to see how the industry is performingduring the current marketing season
He said the industry is facing a lot of challenges citing the anti-smoking lobby which has affected the sector as 3,5 percent of the consumers have stopped smoking tobacco globally the market has been affected.
Lilongwe Auction floors buys on average 10,000 bales a day but on Friday they allowed 12,000 bales to be sold due to large volumes of tobacco bales being shipped in by farmers
Follow and Subscribe Nyasa TV :