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Chipangali Council urges Tobacco companies to offer cost reflective flow prices

• Most farmers have been hugely affected by the low prices offered by tobacco companies.
• This may discourage farmers from engaging in tobacco production in future.
• Chipangali District accounts for more than 50% of tobacco production in Eastern Province.

Chipangali District Council has urged Tobacco companies in the area such as Japan Tobacco International (JTI) and Pemba leaf to offer cost reflective market flow prices to farmers, considering the cost of farming inputs and unpredictable rainfall pattern.
Council Chairperson Maxson Nkhoma disclosed that to Money FM News that his office has received unprecedented complaints from tobacco farmers in the District over low market flow prices, following the opening of the Tobacco marketing flows two weeks ago.
Mr. Nkhoma stated that Tobacco companies are offering US$2.65 cents per kilogram for highest grade of tobacco which is the same price they offered last year, when the dollar was trading at K20, while this year the green back is at K17, hence the drop in the dollar rate will translate into famers giving more tobacco for less money.
“I find these complaints from farmers to be very genuine and an issue of grave concern to the local leadership that tobacco companies have maintained the same buying prices which they offered to the farmers last crop marketing season.”
“I therefore wish to call upon tobacco marketing companies JTI and Pemba leaf operating in the District to offer cost reflective prices to farmers considering the cost of farming inputs and the unpredictable rainfall pattern which made most farmers to face a lot of difficulties to produce the tobacco in the just ended rain season as some of the farmers were manually watering their tobacco crop owing to poor rainfall,” Mr. Nkhoma said.
He further urged the tobacco companies take into consideration all factors when coming up with buying prices.
Mr. Nkhoma revealed that Chipangali District accounts for more than 50% of tobacco production in Eastern Province meaning that most farmers have been hugely affected by the low prices offered by tobacco companies and this may discourage farmers from engaging in tobacco production in future.
“I would like to assure all the Tobacco farmers in Chipangali District that I will this week have meetings with management of JTI and Pemba leaf tobacco buying companies operating in Chipangali to lobby for better tobacco flow prices as the current flow prices are not only unacceptable but also an insult to farmers who will remain with nothing after the Tobacco companies deduct loans of farming inputs from their tobacco sales,” he stated.

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