The tobacco market has shown mixed performance, with increased sales volume but lower average prices compared to last year, according to AHL Tobacco Sales Limited’s latest reports.
Figures sourced from AHL Tobacco Sales X account reveal that as of April 17, 2025, tobacco sales reached 6.7 million kilogrammes(kg), generating over $15.3 million at an average price of $2.28 per kg.
This represents a 16.6 percent increase in volume from the 5.75 million kg sold during the first week of tobacco sales in 2024 earnings from the green gold have increased by 3.4 percent during the first week of sales when compared to the $14.8 million recorded during the same period last year.
However, the average price has declined by approximately 11.3 percent from last year’s $2.57 per kilogramme during the same period.
In an interview, Chief Executive Officer of the Tobacco Association of Malawi (Tama) Trust Nixon Lita said the first week has recorded some disappointing cases of badly mixed tobaccos, even cheating, by mixing trash or non-tobacco related materials with tobacco.
“This shows we still have sellers who are not taking advice. We are aware of the stiff penalties in the new law and we will continue sensitising growers about the dangers of cheating and what the law says. TAMA President Abiel Kalima Banda recently emphasised the same point during his presentation at the opening of Limbe market,” Lita said.
“However, we believe prices will continue going up as upper position leaf will be coming to the market. There are indications that we will have a bigger tonnage as compared to 2024, based on industry crop estimates and also the flow of deliveries so far. With implementation of the new law, we expect farmers to respond and improve on leaf presentation,” he added.
Recently, Minister of Agriculture Sam Kawale posted on social media that the key to unlocking opportunities in the tobacco industry lies in meticulous grading and adherence to quality standards.
He said well-graded, high-quality tobacco will command premium prices, while substandard produce will not meet market expectations, urging farmers to uphold excellence, thereby showcasing Malawi’s reputation as a global leader in tobacco production.
“The government is focused on fair pricing, market transparency, and enhanced support for farmers, in the process laying a robust foundation for sustainable growth. Investments in infrastructure, access to inputs and global trade negotiations are empowering communities like Limbe to thrive. However, success requires collaboration. Farmers, traders, buyers, and government must work in unison to capitalise on these advancements, ” Kawale said.
Tobacco is Malawi’s major export crop and foreign exchange earner. At the end of the 2024 tobacco marketing season, the country realised $397 million after selling 133.37 million kg at an average price of $2.98.
However, in recent years, the industry has faced challenges to grow including extreme weather conditions, high cost of production and lack of competition among buyers on the market aside the anti-smoking lobby by the World Health Organisation
