(NYASATIMES) Bingu concerned with high rate tobacco rejection

Bingu concerned with high rate tobacco rejection
By Nyasa Times
May 9, 2011

President Bingu wa Mutharika has expressed deep concern over this year’s high rate of tobacco rejection and the low prices the crop is currently fetching at the country’s tobacco auction floors. Mutharika made the remarks on Monday when he officially opened this year’s tobacco marketing season at Mzuzu Auction floors.

The President said he was disappointed and concerned that about 70 per cent of tobacco was being rejected at the auction floors despite the tobacco being of good quality.

“I do not understand why the leaf is rejected by buyers, yet the buyers say Malawi burley is one of the best in the world. I will not allow the buyers to sabotage the economy of the country through rejection and buying the good leaf at low prices,” he said firmly.

The Malawi leader said he will continue to protect the country’s citizens by ensuring that buyers do not exploit tobacco farmers who face a lot of challenges growing the crop.

“Tobacco farmers continue to be poor and poorer, yet they toil night and day but do not benefit in the end,” he explained.

To avoid some unscrupulous tobacco buyers with intentions to exploit Malawians, the President advised tobacco farmers to desist from mixing their tobacco with unwanted objects, saying the tendency gives some buyers excuses to reject and/or buy the crop at very low prices.

“There is no way your tobacco can be sold if you put unwanted objects such as charms and eggs in the tobacco because if you do so, your crop will be rejected at the auction floors,” he told the farmers.

Despite the low prices the tobacco farmers are experiencing at the auction floors, Mutharika affirmed farmers in his country will continue growing tobacco, saying the crop is of national strategic importance and significant in the country’s economy.

He then called on all players in the country’s economy namely; tobacco buyers, growers, experts in the tobacco industry, religious institutions and Non Governmental Organizations to cooperate with government in finding solutions to end the current problem and assist to strengthen the country’s economy.

Earlier, the Minister of Agriculture and Food Security, Professor Peter Mwanza, commended President Mutharika for fixing minimum prices for tobacco at the auction floors.

He, however, expressed concern over the high rejection rate at the auction floors which he attributed to poor grading by farmers and over conditioning of tobacco.

On his part, chairperson of Auction Holdings Limited, Dr Charles Matabwa said there were plans to extend Mzuzu auction Floors which will enable the company to sell about 8,000 bales per day from the current 5,000 a day.–(Reporting by Sarah Munthali, Mana)