Tobacco growers will from next year start receiving their proceeds two hours after selling tobacco.
The development follows AHL Group decision to change time of making payments to growers from 24 hours.
This year, 84 percent of the country’s leaf was bought on contract with the remaining 16 percent sold under the auction system.
AHL Group corporate affairs manager Mark Ndipita said the decision came after it was established that the 24-hour period affects most of the farmers who live in rural areas and live far from the banks.
“Farmers need money soon after they sell tobacco and waiting for 24 hours has been a disadvantage to them, and it was costly in terms of time and money.
“[Paying the growers] two hours after tobacco sales will help farmers a lot in accessing their money quickly.”
Tobacco Association of Malawi (Tama) chief executive officer Graham Kunimba has since hailed the new system. n