Tobacco industry regulator, the Tobacco Commission (TC), has set an ambitious target of beating this year’s record of tobacco output and revenue next season.
Already, TC has registered farmers who are expected to produce at least 60 million kilogrammes (kg) of tobacco out of the targeted 200 million kg for the next production season.
This comes as the 2023 tobacco selling season came to an end two weeks ago, with total earnings jumping by 55 percent, thanks to improved volumes and prices.
Figures from the market regulator show that the country has this year realised a total of $282.618 million up from $182 million last year.
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This year, the leaf fetched an average price of $2.35 per kilogramme, which was much better than the $2.14 the green gold attracted last year.
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According to the commission, one of its strategic goals for the next five years is to be raising output each year.
Briefing journalists in Lilongwe Tuesday, TC board Chairperson Godfrey Chapola attributed a rise in this year’s revenue to good prices buyers offered.
“Farmers have registered and have indicated intentions to produce 60 million kg in the first 30 days of registration. That is indicative of increased production next year,” Chapola said.
In the just ended season, demand for the leaf was 170 million kg, but Malawi supplied 120 million kg.
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The commission said it will be pursuing the mega farming and irrigation farming concepts for increased production in the next season.
“We are confident that we will achieve this because, first, the market dynamics are working in favour of increased production,” Chapola added.
He said Malawi had recently signed an agreement with China to be supplying to China at least 10 million kg annually and there would be additional buyers, thereby bringing a positive effect on prices.
The commission also expects that when Parliament passes the proposed bill for tobacco industry, a more conducive environment would be created for all players.
TC Chief Executive Officer Joseph Chidanti Malunga said, this year, more tobacco was sold within a short time compared to the 2022 season.
