Malawi

13 Pages 3294 Words

INTRODUCTION
The country is one of the two countries worldwide that is significantly dependent on raw tobacco for their export earnings. About 70% of Malawi's export earnings come from this single commodity, contributing about 33% of the GDP and 23% of total tax revenue. It is estimated that about 52% of the Malawi population derive their livelihood from the tobacco industry. Tobacco growing in the country is encouraged and supported by the tobacco industry, financial institutions and the government through the provision of technical, material and financial support to tobacco growers. The Malawi government and tobacco industry has pumped in a lot of resources to improve production of the crop; institutions have been established to provide farm input loans, research and extension services. Tobacco is the only crop that enjoys such support.
Tobacco is of great importance for Malawi economy. Tobacco in Malawi remains the major industry having the highest foreign earnings. Tobacco remains the major cash crop for Malawi accounting for 70% of the foreign exchange earnings that are needed to procure goods and services of the county.

There are many constraints facing the tobacco industry right now in Malawi. These problems range from the production to the point when the tobacco is sold. Of these problems, some have greatly affected the industry. These problems can be listed as follows:
Ø Non-Tobacco Related Material (NTRM).

Ø Nesting.

Ø Low input accessibility amongst tobacco growers.

Ø Dwindling soil fertility.

Ø Low tobacco prices at the Auction Floors.

Of these the three major ones are Non-Tobacco Related Materials and Nesting, decline in prices and Over-dependence on Fuelwood.


NON-TOBACCO RELATED MATERIAL (NTRM) AND NESTING.

These are foreign matter found in graded and baled tobacco either on the Auction or in the processing factory. Such materials may include plastic strands from woven polypropy...