The Tobacco Control Commission (TCC) has hinted that the country might not meet its tobacco global quota for this year.
TCC Chief Executive Officer Kayisi Sadala told Zodiak Online Saturday that the country will fall short of the 175 million kilos demand with 14 percent mainly because many farmers have not grown the crop.
He was speaking at an outreach meeting with farmers in Mayaka, Zomba.
Malawi’s tobacco production for this year is pegged at around 148 million kilograms.
For the last two years, the country has failed to meet its quotas, in part due, to low prices.
The TCC CEO hopes the interface meetings with farmers will encourage them to produce more in order to meet the market demand.
“It is our intention that we break even but at the same time we need to ensure that as we license farmers we must do it within the demand of the market because if we oversupply the end result is that the farmer and the economy will suffer as prices would go down,” said Sadala.
Sadala stressed the need to assure farmers that there is still high demand for the crop noted by the increasing quota projections.
“Demand is going higher for the crop so farmers need to be encouraged that buyers still need tobacco. The problem is that many farmers were discouraged with how the market turned out in 2016 when many farmers produced more tobacco but the prices were not good; that was also the case in 2017,” he said.
Farmers have told Zodiak Online they are not happy with prices being offered at present compared to how the market started mid-April.
Charles Chikomo of Dothi Club lamented that farmers’ efforts to grow good quality leaf are going down the drain.
“From the time the IPS system of growing tobacco started, we’ve been encouraged to grow good quality tobacco to which we have adhered but it is disappointing that the same quality crop is fetching lower prices at the market with some even being rejected,” he lamented.
Justa Makiyi of Dengu Club indicated that prices were better off when they were selling lower stem leaf than now.
“After we brought the lower leaf to the floors and received good prices we were encouraged that the upper leaf would fetch even more. But that has not been the case,” said Makiyi.
At least seven weeks of tobacco sales have passed and as of May 24, 2018, 59, 505, 054 kilo of the leaf had been sold at an average price of $1.61/kg, according to the Auction Holdings Limited weekly updates.