Malawi has earned over $4.85 million (approximately K8.47 billion) from tobacco sales in the first week of the 2026 selling season as of April 24, latest figures from AHL Tobacco Sales Limited show.
The revenue comes amid the slow start of this year’s tobacco selling season, marred by lower than anticipated prices and high tobacco rejection rates, which hit 98 percent.
The sales, covering five days from the official opening on April 20, saw a total of 2.26 million kilogrammes (kg) of tobacco sold at an average price of $2.13 per kg.
The earnings are significantly lower than $15.3 million (over K22 billion) generated in the first week of the 2025 tobacco covering nine days of sales, whereby the country sold 6.7 million kg of tobacco at an average price of $2.28 per kg
Meanwhile, statistics from AHL Tobacco Sales Limited indicate that contract sales continue to dominate the market, accounting for the bulk of volumes traded.
- Advertisement -
Burley tobacco under contract arrangements alone contributed 2.2 million kg, generating about $4.7 million in revenue at an average price of $2.13 per kg. This represents more than 97 percent of the total tobacco sold during the week.
In contrast, auction burley recorded significantly lower volumes, with just 4,145 kg sold for $7,958 at an average price of $1.92 per kg, highlighting the continued shift away from the auction system.
Other tobacco types recorded relatively smaller volumes but competitive prices. For instance, contract flue-cured tobacco fetched an average of $2.13 per kg from 51,616 kg sold while contract sun-dried fired tobacco recorded the highest average price of $2.19 per kg, though from a modest volume of 10,955 per kg.
Overall, a total of 23,233 bales were traded during the first week of the selling season.
- Advertisement -
- Advertisement -
Meanwhile, the opening of this year’s marketing season has been overshadowed by high rejection rates, particularly on the auction market, amid growing concern from farmers over the prices that are being offered.
Tobacco Association of Malawi Trust President Abiel Kalima Banda has since called on the government to intervene and address the emerging challenges.
“It’s my plea to the authorities, including the government, to find alternative means to ensure that tobacco on auction is bought. Otherwise, the farmer will be the loser,” he said.
About 40 million kg of tobacco are expected to be sold through the auction system, raising fears that if the current trend persists, many farmers could face significant losses due to rejections and low prices.
Speaking recently at the opening of the market at Limbe Auction Floors, Agriculture Minister Roza Mbilizi said the government was engaging buyers individually to better understand the concerns and resolve bottlenecks that were affecting the market.
In the 2025 marketing season, Malawi sold over 221 million kg of tobacco, generating more than $542 million (about K942 billion).
On Friday, the Tobacco Commission (TC) engaged buying companies to find lasting solutions to high rejection rates on the market.
TC spokesperson Telephorus Chigwenembe said auction tobacco rejection rates in the first week of trading ranged between 96 and 100 percent.
He said preliminary findings indicated that demand and supply dynamics were a key factor behind the challenges observed on the market.
“Global trends show that, in 2026, countries have produced more tobacco than demanded, prompting buying companies to tread cautiously in volumes of their purchases,” Chigwenembe said.
