The 2024 tobacco marketing season kicked off yesterday on a high note at Chinkhoma Auction Floors in Kasungu, with burley tobacco attracting prices as high as $3 on the usually troubled auction side of the market.
For the first time in over a decade, the hard-to-please tobacco growers were spotted grinning from ear to ear at the prospects of getting more United States dollars from the green gold.
It was the first time in 88 years that the opening of the tobacco marketing season was conducted outside Lilongwe Auction Floors.
In an interview soon after President Lazarus Chakwera opened the tobacco marketing season, growers could not hide their happiness with the improved prices.
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Msayiwale Zacharia, who led growers in protesting poor prices at the start of last year’s tobacco selling season, had a different story to tell Monday.
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“This is what we want. We are very happy with how the market has started this year,” Zacharia said.
The growers hailed the impact that new kid on the block Nyasa Tobacco Company has had which, they argued, has brought about constructive competition among buyers.
Nyasa entered the market during the last four weeks of the last marketing season.
According to another grower Alick Jeffrey, the firm started from where it left last year.
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“I am extremely delighted. I didn’t expect prices to be this good,” Jeffrey said.
An inspection of bales by The Daily Times revealed that no bale was sold below $2 on the opening day.
Another grower, Samuel Lalanje, said if prices continue like this, then tobacco growers would not be poor again.
Briefing reporters after touring the market, Chakwera, who was accompanied by Vice President Saulos Chilima, said the tobacco market needs more buyers so as to have healthy competition among them.
“We have already seen how that is playing out today because they are competing to buy the leaf.
Even though this is lower leaf they have started with, they have started with good prices and I trust that we can continue with this type of performance,” Chakwera said.
Nyasa Tobacco Company Chairperson Konrad Buckle said it was gratifying to see farmers rejoicing on the first day of the market.
“Historically, I don’t think it has been seen before that, on the opening day like this, farmers are basically rejoicing. And the reason this has happened is that His Excellency the President Dr Lazarus Chakwera had a vision last year to try and see how we can help actual farmers benefit.
“So, Nyasa was chosen as a partner with SFFRFM [Smallholder Farmers Fertiliser Revolving Fund of Malawi] as a vehicle with experience to identify new markets, expand the customer base for Malawi and make sure that there is real benefit coming back into the farmer’s pockets.
“What has been seen today is unprecedented pricing on the first day. I think there have been a couple of bales [that have sold] over $3 but this is all the vision of His Excellency and execution by Nyasa Tobacco,” Buckle said.
Addressing a gathering at Vivya Primary School Ground, Chakwera said the solution to the problem of forex shortage that has been affecting the country lies in working hard to produce for exports and not just talking.
According to Chakwera, Malawi has many people who just talk but do not get down to business to generate forex.
He said time has come to move from rhetoric to being practical in the generation of forex, adding that this includes supporting tobacco growers who produce forex for the country.
On his part, Agriculture Minister Sam Kawale hailed Chakwera for encouraging his ministry to develop a good working relationship with buyers.
Before opening the tobacco marketing season, Chakwera opened new Tobacco Commission offices in Kasungu.
TC Board Chairperson Godfrey Chapola said the new structure provides state-of-the-art facilities to both growers and staff of the commission, thereby improving service delivery.
“Tobacco farmers no longer have to travel all the way to Lilongwe to transact their business with the commission,” Chapola said.
This year, Malawi is expected to produce 140 million kilogrammes (kg) of tobacco against the market demand of 190 million kg.
“This year, we could have produced more than the projected 140 million kilogrammes if we were not hit by dryspells in some tobacco growing areas.
“Despite this, the output this year has increased due to good prices offered last year, availability of inputs and increased number of growers,” Chapola said.
