/ 8 April 1999

TOBACCO CRASH IN MALAWI

AUTHORITIES in Malawi fear there will be a drastic drop in tobacco production this year, due to an increase in the price of inputs that forced many growers out of the industry, according to the Tobacco Association of Malawi. Tama chief classifier Gasper Banda said the organisation expects about 90-million kilograms of burley tobacco this year, down from the 133-million kilograms produced last year. He said, however, that flue cured tobacco output will not differ much from the 13,8-million kilograms the country produced last year. Malawi lost about $80-million in tobacco sales at the auction floors last year, due to low prices and the depreciation of the Kwacha by over 60% during the period. Tama did not provide financial assistance to farmers for the purchase of inputs during the last growing season because most farmers still owe the association about K200-million ($50-million) in debt, said Banda.