Tobacco growers in Malawi have forced government to suspend sales of leaf tobacco following a row over prices.

"Sales have been suspended temporarily until buyers, growers and government reach an agreement," Tim Kachitosi, spokesman for the auction market, Auction Holdings Limited, told Reuters.
The suspension comes a day after President Bingu wa Mutharika set higher minimum tobacco prices for this year's auction season. He set the minimum price for Burley at USD 2.15 (EUR 1.64) per kg, and flue-cured at USD 3.09 per kg. The minimum prices for 2008 were USD 1.85 per kg and USD 2.15 per kg respectively.
Tobacco sales were suspended last year when tobacco growers boycotted auctions after the market’s leading buyers protested Mutharika's move to set minimum prices n an attempt to raise prices above the cost of production. (ci)