Breaking News:

Big Issues, News

Malawi: Overproduction Strangles Malawi’s Tobacco Industry


Despite being major a foreign export earner, the future of Malawi’s tobacco is uncertain, President Peter Mutharika has observed. Malawi News Agency’s MARY MAKHIRINGA and EMILY BANDA of write.

Mutharika said the continued dwindling prices of Malawi’s tobacco at the auction floor demands that farmers should start growing other cash crops.

“As a country we need to move away from tobacco as it is the buyers who suggest prices for the tobacco.

“Many times I have been meeting the buyers in person where they promise to provide good prices but they only do that in few days of opening the tobacco market and later go back to the lower prices,” he said.

Mutharika said this on Thursday when he met the International Fund for Agriculture (IFAD) president Kanayo Nwanze.

Mutharika said when prices of products are dictated by buyers and not producers, something is completely wrong.

“The writing is on the wall that we need to move on and start focusing on other crops such as legumes which are fetching good prices in Asia,” said Mutharika.

Malawi’s tobacco’s future uncertain

There are a number of factors that have resulted in tobacco fetching low prices.

Overproduction due to wrong policies is one of the factors responsible for poor prices of the golden leaf.

At the time there is little demand for the leaf Malawi continues to over-produce forgetting the basic economic law of demand and supply.

An attempt to bolster the prices through an initiative called Integrated Production System or IPS is failing to change the situation.

The problem of overproduction came in when the government decided to stop its strict regulation of the industry in the 1990s.

The liberalisation of Malawi’s tobacco market resulted in almost anyone else who wished to grow tobacco to do so.

Related Posts

Leave a reply

Your email address will not be published. Required fields are marked *

  • JB attends BT synod centenary… calls for unity and hard work – honours late Matenje

    By Arnold Mnelemba Former President Dr. Joyce Banda on Sunday, November 8 attended celebrations marking 110 years of service for late Harry Kambwiri Matecheta, the first Malawian Church Minister of Blantyre Synod in the Church of Central African Presbyterian. The celebrations were held at Bemvu Congregation of Ntcheu Presbytery of Blantyre Synod. Before the ceremony,…

  • Minister urges MPs to lead in National Forestry Season

    By Faith Mwafulirwa The Minister of Forestry and Natural Resources Nancy Tembo on Thursday presented in the National Assembly a ministerial statement on the National Forestry Season and Launch of National Clean-Up Day scheduled next Month. In her presentation in Parliament, Tembo reminded all Malawians that every Malawian is charged with the responsibility of protecting…

  • WE NEED HEALTHY CHAM – Health minister orders CHAM Officials

    As the country’s public health continues undergoing serious renovation in the way it has had been operating, healthily looking Minister of Health Khumbize Kandodo Chiponda on Wednesday ordered Christian Health Association of Malawi (CHAM) to strive in giving the public the desired healthy health services. Chiponda made the remarks during the interface she had with…

  • K79 MILLION BRIDGE HANDED OVER TO VILLAGERS IN TA KALUMBA & CHADZA -Community hails Chakwera govt for the initiative.

    By Daniel Namwini – MANA Members of parliament for Lilongwe central constituency Hon. Lobin Lowe and Msozi North constituency Hon. Sosten Gwengwe who are also Ministers of Agriculture and Trade respectively on Friday handed over the newly constructed concrete bridge worth K79.8 million from Roads Authority. The Community members from Traditional Authority (TA) Kalumba and…

  • HRDC APPLAUDS AGRICULTURE MINISTRY-Says AIP has registered success despite challenges

    The Human Rights Defenders Coalition (HRDC) has applauded Ministry of Agriculture for a good progress the Ministry has registered in the implementation of this year’s farm inputs subsidy called Affordable Inputs Program (AIP). The coalition has made the remarks this morning at their press briefing in Lilongwe saying despite many challenges the Ministry encountered during…

  • GO TO THE FIELD AS FARMER TUTORS – Nkusa orders Mwimba graduands.

    The Deputy Minister of Agriculture Agnes Nkusankhoma, MP, has challenged the graduating students from Mwimba college of Agriculture to go in the field to serve the farmers and not to boost out to them. Nkusa made the remarks Friday morning at Golden Peacock Hotel when she presided over 18th graduation ceremony for the students who…