Malawi growers paid 10 percent less for better crop at time of high inflation

Tobacco growers in Malawi were paid 10 percent less for their tobacco during the selling season that recently closed than they were paid during the previous season, according to an APA News Agency story.

And this fall in prices occurred at a time of high inflation and in respect of a crop whose quality was improved.

In 2014, growers were paid an average of $1.90 per kg for the 188 million kg sold, whereas in 2013 they were paid $2.11 per kg for the 168 million kg sold.

According to Trading Economics citing Reserve Bank of Malawi figures, the inflation rate in the country averaged 14.09 percent from 2001 to 2014, and reached an all time high of 37.90 percent in February 2013. In August this year it stood at 24.50 percent.

The Tobacco Control Commission chief executive officer, Bruce Munthali, told APA that while growers brought good quality tobacco to market, buyers offered lower prices than they did last year when the leaf’s quality was lower. Munthali said the low prices offered by international buyers had not affected only Malawi but neighbouring countries also.