Tobacco sales were suspended for close to three hours Tuesday at the Kanengo Auction Floors in Lilongwe following growers’ discontentment over continued delayed payments of their dues.
Since the inception of this year’s tobacco selling season, some farmers have been crying foul over the continued delays in payment of their proceeds by authorities.
One of the farmers Dyson Kachere said since the commencement of the market in April at Chinkhoma Floors in Kasungu, no farmer has received money.
“We suspended the sales because we feel that they are using us. Since they opened the tobacco market we have not yet received our money, so we wanted them to tell us what is going on” Kachere said.
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Officials from Tobacco Commission (TC) and Auction Holdings Limited (AHL) engaged the farmers to discuss over the matter where they agreed that farmers will start receiving their money by today.
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Meanwhile the farmers have threatened to suspend the sales again today if they do not receive their payments.
Tobacco Commission (TC) spokesperson Telephorus Chigwenembe said the matter has since been resolved.
“The meeting has managed to settle the matter which was raised by the farmers. There has been a breakdown in communication between the various players involved in the payment process.
“That is what TC, AHL and other players are working on to ensure information required to facilitate timely payments is shared as it should be,” Chigwenembe said.
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Meanwhile, tobacco sales started on high note at the Mzuzu Auction Floors where farmers were seen celebrating the good prices buyers offered.
Tobacco sold on contract was bought at the highest price of $3.15 and while on the auction market, the highest price noted was $2.99.
Owen Nyirenda, a farmer from Engucwini in Mzimba, who brought 15 bales, said the prices are encouraging, looking that many farmers have not yet brought quality leaf to the market.
“The sales will encourage farmers who dropped growing tobacco to restart, hoping that we can now see the profit in the tobacco farming. Looking at what I invested, I am very sure that I will realize a good profit, especially if the prices do not go down,” Nyirenda said.
Sub-Traditional Authority Kawazamawe from Rumphi, who sold his 40 bales, commended the government for championing good prices but said farmer’s fear is the delays to receive their money.
The chief who has been in tobacco farming for the past 10 years said farmers will now have money in their pockets, thereby improving their economic standing.
“I hope we will not only celebrate the prices on the paper because the buyers are taking a long to give us our money.
“We heard what has been happening to our fellow farmers who sold their tobacco at Lilongwe and Kasungu Auction Flours that majority of them have not received their money,” Kawazamawe said.
But Principal Secretary in the Ministry of Agriculture Geoffrey Mamba, who officially opened the market, said all the challenges surrounding the delays by farmers to receive their money have been rectified.
Mamba said the good prices offered to the farmers should be spoiled by delays to receive their money and plan for next season investment.
“What has happened is that the Tobacco Commission, AHL and banks sat down to rectify the technical challenges which were there and I am glad to report that the situation has normalized and farmers will start receiving their money as per the recommended period,” Mamba said.
About 2,718 bales of tobacco were offered for sales on Tuesday out of 6417 which is on stock at Mzuzu Auction Floors.
Mzuzu Auction Flours has capacity to sell 7000 bales of tobacco in a day and it receives tobacco for farmers from Mzimba, Rumphi and Chitipa among other districts.
Figures from TC show that Malawi has so far realized $53.7 million (approximately K94 billion) from 20.1 million kilogrammes of all types of tobacco.
