Limbe Auction Floors in Blantyre has been opened as the government hopes farmers will sell their crop at good prices.
The highest price for leaf on contract when the market opened today was US$2.50 per Kg while tobacco on auction was US$1.30. The lowest price was pegged at 90 Cents.
“We have seen a higher price of US$2.50 for contract market which is quite remarkable. Buyers are also adhering to minimum price of 90 Cents which is also very good,” said Minister of Agriculture Francis Kasaila.
He also hailed the quality of the crops, saying farmers have done well.
Chief Executive Officer of the National Smallholders Farmers Association of Malawi, Betty Chinyamunyamu, also noted that the prices offered are good. She, however, expressed concern over the rate of rejection.
On this, Tobacco Commission boss Kaisi Sadala said the buyers and the commission have not agreed on the classification of some of the crops. But he evexpressed hope that all the tobacco will be bought.
Limbe Auction Floors is the third tobacco market to open in the country after Lilongwe and Chinkhoma floors. The Mzuzu selling floors will open next week.
As of April 23, 1.8 million Kgs of tobacco had been sold in Malawi at an average price of US$1.55 per Kg