Malawi’s Tobacco Control Commission (TCC) has said that about 80 per cent of tobacco growers will be moving to contract farming for the 2012-13 production season.
TCC’s CEO, Bruce Munthali, apparently told The Daily Times that the move was aimed at controlling tobacco production and trying to minimize the overproduction that had a negative effect on prices.
Eighty percent of farmers were going to be producing according to the IPS [Integrated Tobacco System], which acted as a production control measure in respect of quantity and quality.
Under the IPS, growers sign contracts with tobacco buyers who supply them with farm inputs and improved technologies for their tobacco production, in addition to linking them up with financial institutions.
“With IPS, growers would know the quantities needed by contracting companies plus the price they will be paid per kilogramme before venturing into production,” said Munthali.