Malawian Tobacco Sells For an Average 37% Below Government-Mandated Price

(Bloomberg) The average price of tobacco in Malawi fell 37 percent below the government-set price of $2 per kilogram (2.2 pounds) at a sale, Auction Holdings Ltd. said.
The leaves sold at an average $1.26 per kilogram in the week through Oct. 8, from $1.39 recorded two weeks ago, the Lilongwe-based manager of Malawi’s auction floors said in a statement published in the Daily Times newspaper today. During the week, 2.3 million kilograms of tobacco worth $2.9 million were sold, it said.
Malawi began setting minimum prices for the various grades of tobacco in 2007, after accusing merchants of putting growers out of business by offering them lower prices. Continued