PRODUCTION POLICY
Tobacco production was tightly controlled by the government before 1989. All tobacco producers had to obtain a licence from the government regulatory body, the Tobacco Control Commission, and only estates and landowners were eligible to apply for production licence. In addition, a grower had to reach a certain production scale to be eligible to sell tobacco leaf directly on the auction floor. Thus, many small-scale farmers and farmers with rented land were essentially excluded from tobacco production.
In early 1995, with assistance from the World Bank and the IMF, Malawi embarked on a structural adjustment programme designed to re-establish financial stability and set the basis for sustainable economic growth. The structural reforms were aimed at liberalizing the economy and facilitating the development of the private sector. In the agricultural sector, reforms under the adjustment programme included allowing smallholder farmers to produce cash crops, and liberalizing marketing of agricultural outputs and inputs. These measures contributed greatly to the rapid expansion in tobacco production since 1995.
Under the 1995 reforms, hundreds of thousands smallholder farmers were allowed to produce tobacco. Although there was still a minimum quantity requirement to sell output in the auction market, the introduction of “intermediate buyers” for tobacco made it possible for every farmer to produce tobacco, regardless how much they wanted to produce. The intermediate buyers functioned as the middlemen between small-scale tobacco growers and the auction market, buying tobacco leaf from many small-scale growers at a negotiated price and them selling them on the auction floor at the market price. Thus, every farmer was able to produce tobacco without any quantity restriction. In 2000, there were about 700 intermediate buyers who registered at the auction markets, with sales of 3 500 tonnes. All sales were of burley tobacco.
The establishment of tobacco production clubs nationwide after 1989, when the Special Crops Act was removed, and especially in 1995, when the structural reforms were launched, also provided many small-scale farmers with the opportunity to produce tobacco. Under the club system, several smallholders work collectively to produce and sell tobacco. About 93 percent of sales by the clubs have been of burley tobacco. The development of intermediate buyers and of tobacco production clubs attracted many smallholder farmers to tobacco production over the past decade. As a result, the number of tobacco growers increased rapidly after 1990, especially after 1994. The number of registered tobacco growers for burley and flue-cured increased sixfold, from 9 500 in 1990 to 68 150 in 2000. The planted area increased from around 100 000 ha in 1993 to 170 000 ha in 2000.




The Congressional Black Caucus is leading an effort to push the government toward greater regulation of menthol cigarettes, which are popular among African Americans and considered by some to be more dangerous than traditional cigarettes .
Jane Eyre, by Charlotte Brontë


You support taxing my cigarettes an additional $1 per pack for the benefit of two things you like: providing money to programs that help poor Floridians, and discouraging smoking. 
