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| Tama yet to talk to tobacco buyers |
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by
Aubrey Mchulu, 06 April 2004
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16:10:27
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Tobacco Association of Malawi (Tama) president Albert Kamulaga said on Tuesday his association, the voice of tobacco growers nationwide, is yet to talk to buyers regarding growers’ concerns that this year’s tobacco prices are below their expectations.
Kamulaga said in an interview tobacco prices are determined by several aspects including world demand and quality of leaf but Tama has not had a chance to talk to buyers on the prices he described as “lower than last year’s” especially at the Limbe Auction Floors.
He said the delays in talking to buyers have come about because, among other things, the tobacco market has not yet stabilised after opening to auction tobacco on March 22 this year in Lilongwe and on March 24 in Limbe.
“The environment is not conducive to negotiations at the moment but within a week or so we [Tama] should be talking to the buyers,” said Kamulaga, referring to the issue of plastics being found in some tobacco bales as some of the problems that need to be rectified.
Tobacco industry sources said yesterday about 187 bales have been rejected because of the plastics which some growers said find their way by accident. The plastics are often threads of fertiliser sacks some the size of a needle, said one farmer.
During yesterday’s auction of single bales, burley fetched US$0.80 as the lowest and US$1.80 per kg as the highest price while flue-cured tobacco was sold at US$1.20 lowest and US$2.10 highest, according to Tobacco Control Commission officials.
Farmers have, however, lamented the prices which have been averaging between US$0.80 and US$1.60 per kg.
Some tobacco industry experts said it is normal for prices to start at a low note because what is sold at the beginning is bottom leaf which is usually of lower grade.
“Prices will pick up as the selling season progresses when farmers start bringing the top grade leaf. That has usually been the case,” said the official.
Kamulaga, however, said at the present pace he cannot see the prices hitting between US$1.80 and US$2 per kg so soon because growers are selling bottom leaf.
Some growers at Limbe Auction Floors accused the starters, tobacco auctioneers, of contributing to the low prices allegedly because of lack of aggressiveness.
Armed police are still patrolling the tobacco auction floors.
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