Results for third round crop estimates show that this year, Malawi has produced 110 million kilogrammes (kg) of all types of tobacco, which is about 12.7 percent lower than the earlier estimate of 126 million kg.
The volume is also 35.3 percent lower than the 170 million kg international market demand.
In an interview Monday, Tobacco Commission spokesperson Telephorus Chigwenembe said the tobacco volume is 29 percent higher than last year’s 85 million kg.
“Despite this year’s production being lower than the trade demand, we are happy with the performance of the market. Throughout, prices have been good and the rejection rate has been a record low, averaging one percent,” Chigwenembe said.
The market is expected to close on August 4 2023 in Mzuzu. Sales at Chinkhoma selling floors will close on Friday followed by Limbe floors on July 21, according to Chigwenembe.
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Meanwhile, figures from the market operator, AHL Tobacco Sales Limited, show that the country has realised $254.4 million from sales of 108.7 million kg of all tobacco types in the first 13 weeks.
This represents a 77.6 percent increase in volume compared to the 61.2 million kg of tobacco sold during the same time last year.
Average price was seen at $2.34 per kg compared to $2.08 per kg recorded during the same period last year.
In an interview, Tobacco Farmers Association of Malawi (Tama) Trust Chief Executive Officer Nixon Lita said the market has been very impressive.
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“There is high competition for quality leaf on the market such that prices keep increasing every week, with buyers willing to pay some extra cents above the reserved prices per grade. It is our hope that this will continue up until the last sale such that farmers will be encouraged to produce more for the coming 2024 market.
“We have been under producing against export demand for four years now; so, probably, with excitement more farmers will rejoin tobacco farming in 2023-24,” Lita said.
Last year, the country realised $175 million at the end of the tobacco selling season.
