Earnings from tobacco increased by $16.8 million in the third week of sales to reach $53.8 million, figures from the market operator, AHL Tobacco Sales Limited, show.
According to a market update from AHL Tobacco Sales, this far, a total of 20.1 million kilogrammes (kg) of all types of tobacco have been sold at an average price of $2.67.
The earnings represent an 89 percent increase while the average price illuminates a 30 percent jump when compared to the $28.4 million and $2.05 average price recorded in the third week of tobacco sales last year.
Tobacco Association of Malawi (Tama) Trust Vice President Rhodes Sulumba said the constant increase in the average price has excited farmers.
“Unlike in the past when we could open the market with high prices and later see a decline in prices, this year we are seeing marginal increases every week.
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“We have also seen that buying companies are continually offering prices higher than the agreed minimum price, which is commendable and exciting to the farmers. We hope to see even higher prices as high-quality tobacco floods the markets,” he said.
Sulumba said rejection rate has also been marginal, at less than 2 percent.
In an earlier interview, TC spokesperson Telephorus Chigwenembe said they are handling the matter of cheating among farmers with the seriousness it deserves.
Tobacco is Malawi’s main export crop. Commencement of the tobacco selling season has increased hope of enhanced foreign exchange supply in the country.
