House committee to meet tobacco buyers
Parliamentary Committee on Agriculture says it will meet representatives of tobacco buying companies next week to discuss the high rejection rate which hit 93 percent at Lilongwe Floors. Committee chairperson Anthony Kamoto, speaking during a tour of the floors yesterday, said the committee was shocked by the rejection rate, especially when sales for contract tobacco … The post House committee to meet tobacco buyers appeared first on Nation Online.
Black News 
Parliamentary Committee on Agriculture says it will meet representatives of tobacco buying companies next week to discuss the high rejection rate which hit 93 percent at Lilongwe Floors.
Committee chairperson Anthony Kamoto, speaking during a tour of the floors yesterday, said the committee was shocked by the rejection rate, especially when sales for contract tobacco were progressing smoothly.
“To say that they [buyers] are rejecting this tobacco because of quality is not true because what we are seeing is that for the tobacco which is on contract, rejection is almost zero. They are buying everything,” he said.
explaining to members of the committee.
| George Lumwira
Kamoto said the committee will engage buyers to map the way forward.
He commended farmers for remaining patient during the first month of the marketing season, expressing hope that concerns about rejections and low prices could be resolved before the end of the month.
Tobacco Commission chairperson the Reverend Daniel Gunya said discussions with buyers on prices and rejection rates are ongoing.
“Farmers should get the message that their concerns and their worries are being looked into by all the stakeholders facilitated by the commission supported by the Agriculture Committee of Parliament,” he said.
On why contract tobacco is prioritised, Gunya said buyers are first focusing on recovering investments made under contract arrangements.
But farmers at the auction floors say the system is unfair.
In an interview yesterday, Josephine Chisi, a farmer from Ukwe Extension Planning Area in Lilongwe, said all her 20 bales were rejected. She said she found the treatment of auction farmers as exploitative.
“It is very frustrating for the bales to be opened week in week out without being bought. All the farmers obtain the similar licences from Tobacco Commission. They pay same licence fee so it is unfair to treat others as less important,” she said.
TC data show that after four weeks of tobacco sales $40.8 million (about K71.4 billion) has been raised from 19.2 million kilogrammes (kg) sold at an average price of $2.12 (K3 712) per kg.
During the same period last year, the market earned $51.8 million (about K90.7 billion) after selling 22.3 million kg at an average price of $2.32 (K4 062) per kg.
This year’s average price is 10 percent lower than last year, while volumes sold and total earnings have dropped by 20 percent and 25 percent respectively. The number of buying companies has also fallen from 11 last season to eight this year, raising fears of weaker demand in a season expected to have high supply.
Under contract system, tobacco buying companies engage farmers whom they provide with inputs and extension services. The cost of inputs is recovered from sales.
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