There was anxiety at Limbe Auction Floors in Blantyre Wednesday as tobacco rejection rate soared to a record 92.3 percent on the auction system of trading.
Out of the 500 tobacco bales offered via the auction system yesterday, only 40 were bought as buyers preferred contract tobacco.
On the contrary, it was business as usual on the contract system of trading as the market witnessed normal trading. And prices remained subdued on the auction side of the market with a kilogramme of the leaf attracting between 80 cents and $1.20. Similar grade tobacco was, however, attracting revenue of about $2 per kilogramme.
Laudon Nyaka, a tobacco grower from Mayaka in Zomba, was lost for words with the high rejection rate.
“Honestly this is a very sad development. If they want us to stop growing tobacco, they should have just told us. This is very painful. This is the fourth time my tobacco is being rejected. Authorities should take the initiative of talking to the buyers, otherwise we are suffering,” said Nyaka.
Auction Holdings Communications Manager, Mark Ndipita, admitted that the situation was worrisome on the auction system of tobacco marketing and he confirmed that the trend is the same in all the tobacco auctions across the country.
He said as at yesterday, the rejection rate was recorded at 77.9 percent at the Lilongwe Auction Floors with 75 percent for Mzuzu.
“The market was suspended due to high rejection rate at Chinkhoma in Kasungu. We hope that the talks taking place between the Tobacco Control Commission and the buyers would help to improve the situation, especially on the auction side,” said Ndipita.
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