The farmers this year overproduced by 14 million kilograms, against the market demand of 151 million kilograms.
Tobacco is a strategic crop for Malawi, raking in more than 60 percent of foreign exchange and the industry is the second largest employer with over 70,000 workers and 10,000 people in leaf-processing factories dependent on it.
“The new tobacco act compels farmers to produce tobacco in accordance with their licenses issued by the Tobacco Commission”, Tama’s communications officer Sam Kalimba said, insisting farmers can ably grow in agreement with their quota.
He said as an association, Tama has embarked on sensitization campaigns among farmer members on the requirements of the new tobacco act on tobacco production.
“Last year’s tobacco market was marred by over-production of the golden leaf and the result was lower prices offered at the Auction Floors”, Kalimba said.
“The Association does not want to repeat a scenario where tobacco prices were below 80 US cents (K600) from the projected 2 US dollars (K1500) per kilogram,” Kalimba said.
Looking forward to the new growing season, Kalimba said more farmers have shown interest in producing tobacco despite unstable prices that characterized last year’s market.
“We are expecting a successful growing season since we invested much into raising awareness of tobacco production among farmers under our association”, Kalimba said.
Malawi reaped about US 237 million dollars (K177 billion) after selling 165 million kilograms in the last growing season.
The season registered 43, 975 clubs and estates with each club constituting an average of ten farmers.
The future of the global tobacco industry has been hit by the global anti-smoking lobby.