Monday, May 11, 2009

(NYASATIMES) Bingu makes fresh attack on Malawi tobacco buyers

Bingu makes fresh attack on Malawi tobacco buyers
Nyasa Times 11 May, 2009 11:27:00

Anger –filled Malawi President Bingu wa Mutharika on Monday stormed Lilongwe Auction Floors and threatening to chase out of the country tobacco buyers accusing them of exploitation.

In a his remarks at the Auction floors, Mutharika described the tobacco buyers as “inhuman” and “colonialists” for ignoring minimum prices which he set during the opening of the tobacco selling season.

Mutharika announced that the minimum price for burley tobacco this sea son should be US$2.15 per kilogramme while that of flu-cured tobacco should be US$3.09.

Buyers have defied the President’s orders as they have been offering poor prices of between 90 cents and US$1.80.

“If you people had an idea how these people are suffering, you could have been exploiting them. You are not human,” said visibly angry Mutharika.

The President who seeks re-election next week Tuesday threatened to “fight” with the buyers.

“You must fight, we fight, but I can bet you that I win. I don’t care where you leave other buyers will come,” said Mutharika who hopes to lure Chinese buyers.

One of the buyers an official of Alliance One company told Mutharika point blank that it was difficult to offer minimum prices because most farmers were offering low quality tobacco.

Mutharika said he will revoke buyer’s licenses if the prices will not improve.

The official told Mutharika: “A lot of tobacco has been badly handled. Genuinely tobacco of right grade we are paying the minimum prices.”

Mutharika said tobacco is a strategic crop for Malawi and his government cannot watch and allow it to be exploited.

Tobacco accounts for over 75 per cent of Malawi's foreign exchange earnings. Over 80 per cent of Malawians depend on the tobacco industry.

The leaf also contributes to over 30 per cent of the country’s Gross Domestic Product as well as 23 per cent of all tax collections.

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