Malawi has earned $12.9 million from tobacco sales in the first week of this year’s season, tabulated figures show.
This far, the country has sold 5.1 million kilograms (kg) of all types of tobacco at an average price of $2.53 per kg.
The earnings have grown by a record 186 percent when compared to the $4.5 million realised in the opening week of last season when the quantity sold was 2.4 million kg.
It further reflects a 36 percent jump in the average price when compared to the $1.85 recorded in week one of 2023.
This far, the highest price recorded on all the markets is $3.15 per kg while the lowest is $1.50.
If the trend persists, the country could realise more than last year’s total earnings.
In an interview, Tobacco Association of Malawi (Tama) Trust President Abiel Kalima Banda said in the past years, the industry has been failing to meet low prices.
He said he expects production to hit 200 million kg next season
“The prices will press farmers to go back to the field and work harder to produce more tobacco,” Banda said.
Principal Secretary in the Ministry of Agriculture Dixie Kampani said the industry is moving in the right direction.
“Meeting market demand due to the demand is another thing because it is an issue related to production, maybe because of climate shocks and other things; we will try our best to see if we can increase, because now the reaction is going to be that most farmers, seeing this, want to produce more,” Kampani said.
The country is expected to produce 140 million kg of tobacco this year, which is 50 million kg shy of the 190 million kg international market demand.
During the 2023 tobacco marketing season, Malawi earned $282.62 million after selling 120 million kg of tobacco at an average price of $2.35.