Figures from AHL Group show that the first 10 weeks of the tobacco marketing season have posted $128.1 million, up from $97.4 million realised during the same time last year.
Meanwhile, the average price the leaf is fetching has slightly improved from $1.51 per kilogram (kg) to $1.64 per kg.
Earlier this year, JTI Leaf Malawi called for amendments in the Tobacco Industry Act, as farmers also had their reservations on the Act. While farmers felt that the new law allows the Tobacco Commission (TC) to keep 75% of overproduced tobacco, JTI has called for the amendment of sections 45 (3) and 64(2) of the Tobacco Industry Act. Section 45 (3) holds that “in case of funded contract farming, production of alternative crops may be the term of the contract but the buyer shall not provide the inputs for the alternative crops.” Section 64 (2) provides that “Under contract farming, a buyer shall have the responsibility of hiring and making payment for the transportation of tobacco from an estate to tobacco floors.”
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