TC pledges continued Consultations on cost of production

January 19, 2023
The Tobacco Commission has assured tobacco growers in the country that the regulator will continue with consultations on the cost of the production of the leaf.

Tobacco Commission Chief Executive Officer Dr. Joseph Chidanti-Malunga gave the assurance during a consultation meeting with growers in Lilongwe on Wednesday.

The first consultation meeting was held in Blantyre on Tuesday and another is scheduled for Friday in Mzuzu.

“We will continue with these consultation meetings to ensure that in the end, we have figures that are accepted by all stakeholders,” said Chidanti-Malunga at the Lilongwe meeting.

The cost of production contributes significantly to the process of determining minimum prices of tobacco in a given year.

In the determination of the cost of production, the Commission is working with the Agricultural Research and Extension Trust (ARET).

After the consultations with growers, draft figures of the cost of production will be shared with other stakeholders such as tobacco buyers to solicit their input.

Apart from helping in determining minimum prices, the cost of production also helps in guiding decision making by institutions such as insurers, lenders and others involved in the tobacco value chain.

Tobacco remains Malawi’s major forex earner.

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