TOBACCO FARMERS TO LOSE 75% OF REVENUE – Malawi News Online

Tobacco Commission (TC) has called on tobacco farmers to sell off their excess tobacco, but according to the new tobacco Act, the farmers will only make 25% profit, as 75% will belong to TC.

In a scenario whereby tobacco farmers have grown excess tobacco than the demand by buyers, the Tobacco Commission (TC) allows the farmers to sell the excess tobacco, a process known as uplift. TC Chief Executive Officer said uplifts will be considered only when the farmers sell of their tobacco. “We will offer uplifts when we are satisfied that at least 75% of our farmers have pushed in their tobacco,” Sadala said, in June.

Fast forward, the tobacco market registered that 75% of the demanded tobacco was sold off, so the call for uplift was mandatory. However, Tobacco Association of Malawi (Tama) chief executive officer Felix Thole told The Nation the development will demotivate farmers, describing the development as a big blow to farmers because it means unprecedented losses will be incurred. “Our appeal is that we should wait till next year for full implementation of the provisions because the law came in while farmers had already grown the crop.”

AHL Group general manager responsible for sales Graham Kunimba said the implementation of provision is raising more questions from growers because they produced before the law was enacted which means it is being implemented retrospectively.