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Two buyers exit tobacco market

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Two tobacco buyers have exited the market this year bringing the total number of buyers to nine from 11.

Toba c co Cont r o l Commission (TCC) Chief Executive Officer Albert Changaya said the two companies are local cigarette producer Nyasa Manufacturing and Al Faede from Egypt.

Changaya said while the rest of the buyers registered to buy tobacco this season, the two companies did not register.

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He, however, said the absence of the two companies will not in a way affect competition on the market.

Changaya said though the prices are slowly improving, the regulatory body and government are in constant negotiations with the buyers to absorb the excess tobacco that is on the market.

“While as a country we over produced, other countries globally such as Brazil under produced hence our feeling is that the buyers will use our excess to cover up the gap where the other countries under produced,” said Changaya.

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He further said the buyers have been requested to ask their customers to increase their orders.

“The current situation is like a crisis whereby the buyer is looking for 132 million kilograms of burley while our production stands at 175 million kilogrammes. With this situation, we have, therefore, requested the buyers to ask their customers to try and absorb the remaining tobacco.

“With the other types of tobacco, we do not have a problem as the trade requirements are almost at par with what the farmers produced,” he said.

Changaya was, however, optimistic that the excess burley tobacco will be absorbed as most customers had not yet confirmed their orders.

He said presently the customers have started confirming their orders which mean even the prices will also improve on the market.

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