By Joel Chirwa
MZUZU-(MANA)-Minister of Agriculture, Sam Kawale has urged farmers in the country to strictly adhere to supplying good quality leaf at the ongoing auction market for them to reduce rejection rate and obtain maximum earnings from their product.
The Minister made the call Wednesday, May 10, 2023 during the official opening of the Mzuzu Auction Floors where he also expressed satisfaction with the prices offered by the buyers.
“Tobacco production process is a lengthy and difficult process from the nursery to the Auction Floors. You need to strictly adhere to all conditions as directed by extension workers.
“You need to always supply good quality leaf that has been well graded, that will encourage buyers to offer you good prices,” he said.
He observed that in previous years there had been increased rejection rate at the auction floors because farmers were not meeting market standards for the leaf resulting in poor financial earnings for individual farmers.
Kawale said there was need for local farmers to aim towards attaining zero rejection rate by ensuring that the leaf they have baled is moisture free and meet set grading standards.
He expressed satisfaction with the prices offered by buyers at the ongoing auction market saying that will translate into economic benefits to the individual farmers and the national economy.
“Mzuzu market has started well. We have seen good price offers the past two days. The statistics have been impressive. Let me quickly say there have been similar trends at Lilongwe, Chinkhoma and Limbe Auction Floors.
“We have seen buyers offering US$40 to US$50, above set minimum prices. This means individual farmers will earn more money at the same time the country’s economy will pick up from the foreign exchange earnings the country will get from the sales,” he explained.
He said current economic forecast indicate that tobacco contribution to national economy will increase by 50 per cent this year.
The minister has also disclosed that Chinese government has signaled to buy more of the country’s leaf on annual incremental volume from now onwards.
Tobacco Association of Malawi (TAMA) President, Abel Kalima Banda expressed satisfaction with the ongoing prices offered by the buyers at the floors.
“The situation has improved in comparison with last year. The buyers this year are not offering less than minimum price agreed with government. We hope they will maintain the consistency in the coming days,” he said.
A total of 3,145 bales were offered on Wednesday with good quality leaf fetching $280 average price.
Commenting on concerns from some contract farmers who said they were getting less in comparison with their counterparts on open market, Banda said the price variations were normal.
“Prices on auction market is dictated by market principles of demand and supply. There might be slight difference in prices yes this is due to the fact that on open market buyers compete.
“But I have noticed a scenario on contract market where buyers have offered US$85 above minimum price,” he said.
