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Tobacco failing to fetch much needed foreign currency to resuscitate ailing Malawi economy

High rejection rate at auction floors
High rejection rate at auction floors

LILONGWE-(MaraviPost)—The country’s tobacco is still struggling to sway the market with so far earning US$ 173.2 million against US$ 255.5 million realized during the same time last year.A trading update for 16 weeks of this year-2016 which The Maravi Post sourced shows that all tobacco categories; burley and flue cured of  110.2 million (110,217,137) kilograms went through the auction against 143.7 million (143,749,555) kilograms auctioned the same time last year.

The average price of the green gold of this year in 16 weeks is at US$1.57 which is also the same rate the commodity traded last year in the same period.

This means that the country has realized fewer dollars in this selling season which has been culminated with high rejection rates, poor prices among other factors.

Earlier during the tobacco sales this year, the rejection rate was at 76 percent higher than that of last year which was hovering between 20 and 30 percent.

The development continues to anger farmers especially those on auctioning system due to the low prices offered. They are describing the situation as tantamount to economic right violation which buyers are inflicting on them.

This is happening at a time Malawians are also experiencing economic turmoil coupled with high inflation rate, food insecurity, skyrocketing of prices for goods and services among others.

 

 

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