This year’s tobacco selling season is expected to conclude on September 18, the Tobacco Commission (TC) has said.
News of the closure of the market comes at a time statistics indicate that the country had realised a total of $209.95 million from 142.82 million kilogrammes (kg) of the green gold at an average price of $1.47/kg as at August 21 2019.
In a letter to all tobacco stakeholders TC Chief Executive Officer, Kayisi Sadala, said the Limbe, Chinkhoma and Mzuzu Auction Floors would close on September 13, with the Lilongwe Auction Floors closing on September 18.
Sadala said the last date for tobacco deliveries at Limbe, Chinkhoma and Mzuzu markets is September 11 while for Lilongwe is September 16.
“The commission would like to advise growers who produced more than the allocated quota that quota uplifts for such excess tobacco will be on Saturday, 7 September 2019, in all the commission’s division offices.
“In order to enforce compliance on production quota, the commission will effect penalty on these uplifts as provided for in the Tobacco Industry Act of 2019,” the letter reads.
Sadala has also urged tobacco buying firms to ensure that they meet their contract obligations with growers and support the entire market to its end.
The Tobacco Industry Act, among other things, stipulates that “where a grower willfully produces excess tobacco in contravention of his production quota or the contractual agreement with his buyer, as the case may be, the [Tobacco] Commission shall uplift the grower’s production quota and collect three quarters of the proceeds of the excess tobacco and remit the remaining one quarter to the grower”.
Statistics from TC indicate that this year’s tobacco production has exceeded demand by 43.82 million kg.
Today’s top business story: Top Commercial Banks In Malawi