JTI Provides K1.2B Support for Tobacco Growers Before Markets
Davie Namoni, a tobacco farmer based in Lilongwe, praised JTI's support, saying it has helped to improve tobacco quality and quantity produced by growers.
LILONGWE, Malawi— Japan Tobacco International (JTI) Leaf Malawi Limited has released 1.2 billion kwacha in collateral funds to assist over 8,600 contracted tobacco farmers in preparing their crop for market, writes Moses Nyirenda.
The funds, which the farmers had deposited with JTI to access loans for growing tobacco, will help them process and care for their tobacco ahead of the marketing season that typically opens in April.
"Every year we see that tobacco growers struggle starting from December up to the opening of the market which is around in April, they struggle to have food for their workers and also marketing related costs," said Limbani Kakhome, JTI's corporate affairs and communications director.
"Sometimes the growers resort to take loans from loan sharks and sometimes they sell tobacco at very cheap prices so that they can bridge the cash flow challenges," Kakhome said.
"Hence we started releasing back the collateral to help the farmers manage their livelihoods and cash flow constraints."
He said JTI also released the funds to appreciate its good relationship with the farmers, who have remained loyal in delivering required volumes and quality over the years.
"Based on the strength and the quality of our contractual relationship with the growers, we realized that our growers are quite loyal and they do deliver the required volume and quality tobacco," Kakhome said.
Davie Namoni, a tobacco farmer based in Lilongwe, praised JTI's support, saying it has helped to improve tobacco quality and quantity produced by growers.
He commended the collateral release, saying the funds will assist in harvesting and processing to prepare the crop for market.
"The funds released would help us in harvesting and processing of tobacco in order for it to be ready for market," Namoni said.
Tobacco is one of Malawi's major export earners, but growers often face financial challenges leading up to the marketing period due to the seasonal nature of tobacco farming income.
The early release of collateral funds from companies like JTI provides critical cash flow to farmers during this period.