The Tobacco Commission says Malawi’s traditional tobacco buyers have assured the regulator they will continue buying the leaf, parrying fears surrounding the future of the country’s biggest forex earning cash crop.

Speaking at the Economics Association of Malawi (ECAMA) annual conference in Mangochi recently, Tobacco Commission Chief Executive Officer Dr. Joseph Chidanti-Malunga said none of Malawi’s buyers Malawi has signaled intentions to quit.

Dr. Chidanti-Malunga said there has been misconception of developments in the country’ tobacco industry due to lack of information and swore the leaf will remain at the top on the list of Malawi’s leading cash crops in the near foreseeable future.

“There is no single crop, at the moment and in the near foreseeable future, that can surpass the contribution that tobacco makes to the economy of this country,” Chidanti-Malunga told delegates at the ECAMA conference.

Tobacco contributes between 12 and 15% of the country’s GDP.

Recently, Malawi has been failing to meet buyers’ 140-million-kilogram demand for tobacco, prompting the Tobacco Commission to call for increased volumes of the leaf being grown by farmers in the country. However, in 2020, Malawi produced 114 million kilogrammes only while in the following year, production increased to 123 million kilogrammes, still some millions short of trade demand.

Dr. Chidanti-Malunga said people have been made to think there is dwindling buyer interest in the country’s tobacco yet it is simply new dynamics playing out.

“The Transformation in the tobacco industry has been misunderstood as signs of a dying industry.”

Among the changes in the tobacco industry around the world is the demand to protect the environment, eliminate child and force labour and tenancy.

In November 2019, the United States banned imports of Malawi’s tobacco over child labour involvement in the value chain. However, in July, 2020, the American government eased the ban following what it called a “rigorous evaluation” of social compliance and efforts to deal with forced labour from tobacco’s supply chain.

The Tobacco Commission CEO warned if Malawi does not comply with global demands with regard to environmental, social and governance issues, the country is poised to lose its demand quota to other countries such as Tanzania, Mozambique, Zimbabwe and Zambia.

Meanwhile, the Tobacco Commission and Geneva-based Eliminating Child Labour in Tobacco Growing (ECLT) Foundation have signed a three-year Memorandum of Understanding to strengthen the fight against child labour in the tobacco industry in Malawi.

The MOU sets a framework for collaboration between the two institutions to contribute to Malawi’s National Action Plan for the Elimination of Child Labour (2020-2025).

Among others, ECLT Foundation will help build the capacity of the Tobacco Commission in dealing with the vice. The Commission has since already set up a unit to focus solely on child labour issues in the country.

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The Tobacco Commission will on November 1, 2021 roll out registration of tobacco transporters and commercial graders for the 2021/2022 season.

The exercise will close on December 31, 2021.

Transporters and graders who would like to be involved in the 2021/2022 season can download registration forms from this website or collect the same from our divisional offices in Lilongwe, Kasungu, Mzuzu and Limbe.

Transporters and graders will only be allowed to operate upon payment of license fees.

For inquiries, if any, please contact our Public Relations Officer Telephorus Chigwenembe on 0999 987 951.

The Tobacco Commission has extended the period for the registration of growers for the 2021/2022 season to November 30, 2021.

Under the Tobacco Industry Act, it is an offense to grow tobacco without a license. 

When it initially extended the period to October 29, the Commission said it did so in response to Malawians’ growing interest to produce tobacco in the 2021/2022 season.

The Commission has since assured growers that during this extension there will be no payment of late registration fees.

All Malawians interested to grow and sell tobacco in the forthcoming season are, therefore, being advised to go to the Commission’s divisional offices in Lilongwe, Kasungu, Mzuzu and Limbe for registration and licensing.

The Tobacco Commission has called on tobacco growers in the country to respect human rights if the industry is to survive.

Speaking Wednesday ahead of the World Tobacco Growers Day commemorations on Thursday, the Commission’s Chief Executive Officer Dr. Joseph Chidanti Malunga said respect for human rights in tobacco has never been more critical for Malawi.

“Today, globally, human rights issues in the industry are hot topics. We cannot, therefore, lag behind but fit ourselves in the discourse by ensuring compliance,” he said.

“Growers should avoid engaging child labour at any point,” Dr. Chidanti Malunga said, arguing “child labour denies the country the opportunity to have enlightened tobacco growers in future as the children involved do not proceed with their education”.

He said educated citizens can become successful tobacco farmers because it will be easier for them to fit into the industry that is changing.

The Commission recently said would be signing a three-year Memorandum of Understanding (MOU) with Geneva-based Eliminating Child Labour in Tobacco Foundation (ECLT) to strengthen the fight against child labour in the tobacco industry in Malawi.

The World Tobacco Growers Day is this year being commemorated under the theme ‘Ending Child Labour Today Requires Instant Action’.

Meanwhile, the Tobacco Commission says is excited with the Amended Employment Act that, among others, outlaws the tenancy system.

According to the Commission, eliminating tenancy in tobacco alongside child labour will make Malawi’s leaf more attractive on the global market.

Tobacco remains Malawi’s economic backbone.

Traded Volume

2021 Week 20 cumulative sales versus cumulative sales by Week 20 in 2020:

1. At $1.49/kg in 2021, Burley registered a 7% increase in the average price compared to the $1.40/kg registered in 2020 in the week under review.   

• The FCV average price plummeted in 2021 by 4% from $2.33/kg recorded in the week under review in 2020 to $2.23/kg in 2021.

• NDDF sales were concluded in week 19 in 2021. In 2020 however, the NDDF sales were concluded in week 20 where the average price registered at $1.48/kg was 7% lower than the $1.58/kg observed in week 19 of 2021. 

• There were no sales for SDF in week 20 as the closure of Limbe floors on 23^rd July, 2021 concluded the trade for the crop in the 2020/21 tobacco marketing season.

• Sun Air was only traded in the 19^th week of sales in 2021.   

• At $1.60/kg in 2021, the average price for all tobacco types rose by 4% from $1.53/kg observed in a similar week in 2020.

BUYER PERFORMANCE

123,289,531 kg (123.3 million kg) of all types of tobacco has been purchased. This translates into 93% of total trade requirement and 98% of 2021 second round estimated production being purchased.

• Out of the total volume traded, 13% was purchased on the auction market whilst 87% was purchased on the contract market.

• Of the total volume traded, Burley forms the bulk (84%) of it. FCV and DFC account for 14% and 2% respectively.

SALES BY FLOOR

1. By the end of Week 20, cumulatively; Lilongwe floors had traded 46%, Chinkhoma 22%, Mzuzu 23% and Limbe 9% of the total volume sold nationally.

• Only Lilongwe selling floors operated in week 20.

• Limbe selling floors, still maintains the highest average price at $1.84/kg, seconded by Lilongwe at $1.60/kg, Mzuzu at $1.56/kg and Chinkhoma at $1.54/kg.