Fears are growing in Malawi’s tobacco-growing communities as vendors reportedly increasingly invade villages to buy tobacco directly from farmers, threatening to disrupt the crop’s market.
The Ministry of Agriculture has said it is alarmed by the development and is working with the Malawi Police Service and the Tobacco Commission (TC) to tighten the country’s borders to prevent the illicit export of tobacco and ensure that all of this season’s crop is sold locally.
Deputy Minister of Agriculture Benedicto Chambo expressed concern that the vendors are tempting growers with immediate cash offers, a move he believes could pave the way for a disastrous tobacco season if left unchecked.
Chambo pointed out that most of the tobacco that ends up being smuggled out of the country originates from these vendors who buy tobacco from farmers.
He said many of these vendors do not have licences to sell their leaf at auction floors, further complicating the situation.
“This is why we have engaged the police to tighten the borders and confiscate all tobacco and scales used by these vendors in some markets designated for tobacco buying.
“We cannot allow our economy to be smuggled outside the country,” Chambo said.
He also blamed the vendors for allegedly contributing to the high rejection rates at the auction floors, apparently because many of them fail to properly dry and package the tobacco.
The Deputy Minister said this lack of quality control results in tobacco from various growers being mixed in a single bale, often leading to rejection by buyers.
“Most vendors buy tobacco from different farmers, meaning a single bale can contain tobacco of varying qualities.
“This is the kind of leaf that is typically rejected by buyers at the auction floors and such wastage is unacceptable in such an important sector,” he said.
Chambo expressed optimism about the overall tobacco yield for the year, though he acknowledged that some areas had been affected by inadequate rainfall.
He said farmers who were able to irrigate their crops during a dry spell have managed to produce quality tobacco, but those without irrigation capabilities have faced significant setbacks.
TC acting Chief Executive Officer Evans Chilumpha said Malawi is on track to produce more tobacco this year than in the previous season.
Last year, the country sold around 133 million kilogrammes (kg) of the leaf, generating about $395 million. This year, production is expected to reach between 140 million and 150 million kg.
Chilumpha also expressed confidence that, with proper regulation, Malawi could generate even more foreign exchange.
“If all of this tobacco ends up at the auction floors, we should be able to generate a lot of foreign exchange for the country,” he said.
Tobacco, often referred to as ‘the green gold’, has long been a major source of foreign exchange from Malawi’s agricultural sector.
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