Wednesday, April 22, 2009

CHANGE THE TOBACCO AUCTIONING CALENDAR




Since the president of Malawi Dr. Bingu wa Mutharika announced the new prices of tobacco in the country, little or nothing has happened to improve the pride of our farmers by giving them what they deserve after a hard season of farming. Others are saying that this was just a political gimmick ahead of the elections that are to be held in the country while others think the president has a point.

Farmers don’t forget how they enjoyed in the 2007/8 season when tobacco made history with others farmers selling it as much as $12 per kg. Being an election year and a year when Malawi has experienced good rain fall, farmers were expecting much better than what is been offered at the action flows.

‘I thought these buyers will at least for once appreciate how we struggle with tobacco farming and stop reaping from us’ one farmer said at the heat of discussions with fellow farmers after sell his tobacco at $1.20 cents.

Other farmers seem to understand that the world is going through economic crisis which is living everyone with a little choice but to economize and try to take advantage of situations. After a hard time of labor and struggle to produce high quality tobacco, the prices being offered at the auction floors lives a lot to be done. A story is told of how a farmer took his life after realizing that he will not be able to repay the loan he took from the bank after selling his tobacco at low price.






Recently, both national and international demand for tobacco has dropped. In the United States, higher federal and state taxes on tobacco products, smoking bans, an increasing number of smokeless tobacco users and the availability of foreign tobacco have driven the demand lower. The increasing value of the dollar, the global economic downturn and an increase in supply of lower quality tobacco has decreased the global demand for burley.

This is but a tip of an iceberg that has to be addressed by all stakeholders for the benefit of the countries economy and the poor farmer. To chase the buyers is one solution but this will live the market suffocating and the tobacco not being sold, not forgetting that there is an anti-smoking campaign going on.

March, is a season in Malawi when it is still raining, however for a long time now the tobacco auctioning has been opening this time. This is also the same time when much of the tobacco has just been harvested and it is still fresh and wet. Farmers are forced to pack the tobacco while it is wet, rush for money at the auction to be disappointed at the end.

The government has tried to negotiate with the buyers for better prices but the buyers seem to have stuck to their guns and opted to offer their own way, you cannot blame them on that, they have the money and the one with money controls the world.

My suggestion is that if the government can consider changing the action calendar from March to mid April. This will give farmers ample time to prepare high quality tobacco which is well dried ready for action. This will also help them to make good preparations about transport arrangements to avoid vehicle breakdowns due to muddy roads that are impassable in February and March.
It remains to be seen if the newly opened uranium mine can replace the potential of Tobacco as the countrys’ top foreign exchange product

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