By Cathy Maulidi:
JTI Leaf Malawi has disbursed K1.2 billion to its contracted tobacco growers as pre-season settlement of collateral.
JTI Corporate Affairs and Communications Director Limbani Kakhome said the funds would help the farmers in other activities through the production chain.
Traditionally, the money is disbursed at the end of the tobacco selling season.
But Kakhome said the money will be distributed to the majority of JTI growers as collateral release.
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According to Kakhome, instead of loaning the farmers more, JTI has decided to do the collateral release to support them.
“Tobacco production is quite involved and therefore as a company we felt we should lift the financial load off the shoulders of growers by giving them back the money they deposited with us as collateral at the start of the season,” Kakhome said.
He added that, every year JTI growers deposit a sum of money as loan security to enter a contract with the company and the money is given back to the growers as collateral release to help the growers with their day-to-day livelihood needs and cover some production costs.
This year, JTI has contracted 8,600 growers.
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One of the beneficiaries, Davie Namoni, thanked JTI for the collateral release saying it will go a long way in supporting the growers during this time when they are preparing their tobacco for the market.
According to Namoni, the JTI growers have been fully covered and the tobacco vendors can’t come near them for offers.
In January this year JTI also supported its growers by distributing 3,255 metric tons of maize on loan to its growers who farm over 12,000 hectares of tobacco across the country.
Each grower received a minimum of six bags of maize meant to cushion them from the hunger that has ravaged our nation this year.
