1. PRESENTED BY : DR. BRUCE C. MUNTHALI 2013 TOBACCO INDUSTRY SEMINAR

2. PRESENTATION OUTLINE 1. BACKGROUND 2. IMPLEMENTATION MODALITIES 3. SUCCESSES AND CHALLENGES 4. WAY FORWARD

3. 1. BACKGROUND Approved in 2012 Preliminary Implementation Guidelines put in place 2013 First Year of roll out

4. 2. IMPLEMENTATION MODALITIES Definition of Roles Grower Identification by Contracted Parties (Registration) Input Distribution and Loan Mechanism Transport Logistics (Management and Delivery Mechanism) Marketing Arrangements (Sales Plan)

5. 3. SUCCESSES AND CHALLENGES SUCCESSES GAP compliant (Crop production and quality increase), Child Labour, reforestation Increased access to inputs Improvements in Pricing (Compared to 2 to 3 years ago, IPS/Auction) Short Marketing Period (July/ August) Improved CSR (Education / Health Afforestation)

6. 4. SUCCESSES AND CHALLENGES, Cont’d/.. CHALLENGES Mix Up of Contracted farmers amongst merchants including Association Off loading problems (IPS/Auction) Delays in executing payments to farmers after full repayment of loans

7. 5. WAY FORWARD Implement IPS in line with the revised regulations incorporated in the revised Tobacco Act.