Maravi

(NYASATIMES) Malawi earns US $258 million in tobacco sales

Malawi earns US$258million in tobacco sales
By Nyasa Times
Published: July 6, 2010

The country has, as of July 2, 2010, realized US$258.6 million from the ongoing tobacco sales that have seen a total of 130 million kilogrammes being sold, Auction Holdings Limited (AHL) statistics show.

According to the data, the 130 million kilogrammes have been sold at an average price of US$1.99 (K318.40) per kilogramme, with burley tobacco fetching an average price of US$1.92 per kilogramme.

The AHL data further indicates that the northern dark fired tobacco and flue cured tobacco are selling at US$2.60 and US$2.68 per kilogramme, respectively.

Despite the suspension of sales at Limbe Auction Floors towards the end of last week as farmers were complaining about poor prices, Tobacco Control Commission (TCC) Chief Executive Bruce Munthali (pictured) has said so far the market is progressing on well.

“We are operating normally and so far the buyers are sticking to the government set minimum price,” said Munthali.

As the tobacco selling season, which opened in March, is scheduled to close in September, Munthali disclosed: “Half of the tobacco has already gone through the auction, meaning that we’re on track.”

Meanwhile, the TCC boss has indicated that the market at Limbe auction is expected to close end July “if all goes according to plan” while the Lilongwe market is expected to close end September.

Tobacco is Malawi’s chief foreign exchange earner which accounts for over 30 per cent of the country’s Gross Domestic Product (GDP) and contributes up to 23 percent in all tax collections.

Over 75 percent of all foreign exchange earnings is derived from tobacco. And, more significantly, at least 80 per cent of Malawians directly and indirectly depend on the tobacco industry.

Labels: MALAWI, TOBACCO

posted by MrK @ 1:55 AM