The Impact of Inflationary Condition on the Financial Growth and Sustainability of Tobacco Farmers in the Rural Areas

Hastings Kumwenda*, Albert Chipeta**
*-** Department of Commerce, DMI-St. John the Baptist University, Mangochi, Malawi.
Periodicity:May - August'2023
DOI : https://doi.org/10.26634/jecom.3.2.20085

Abstract

Rural tobacco farmers can face serious financial crises under the condition of constant price changes due to inflation. Inflationary conditions can also destabilize the financial plans of rural tobacco farmers. It was therefore the objective of this paper to assess the impact of inflationary conditions on the financial growth and sustainability of tobacco farmers in rural areas. A survey approach is applied in this research. Data was gathered through a primary source, and SPSS was applied to analyze the data, which was computed and presented in the form of charts and graphs. It was found that inflationary conditions have a significant negative impact on the financial growth and sustainability of tobacco farmers in rural areas. These include an increase in the price of farm inputs, low quantity and quality of tobacco, and a low price of tobacco on the auction floors. Thus, the study recommends that the government should reduce taxes, especially on the importation of agricultural materials, and the government should adopt proper strategies to hedge the risk of inflation, and, of course, farmers should work on the quality of tobacco.

Keywords

Inflation Rate, Tobacco Price Received, Farm Input Price Paid, Tobacco Metric Tonnes, Agricultural DGP.

How to Cite this Article?

Kumwenda, H., and Chipeta, A. (2023). The Impact of Inflationary Condition on the Financial Growth and Sustainability of Tobacco Farmers in the Rural Areas. i-manager’s Journal on Economics & Commerce, 3(2), 1-12. https://doi.org/10.26634/jecom.3.2.20085

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