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The Times Group > Blog > Business > Tobacco outlook concerning— Tobacco Commission
Business

Tobacco outlook concerning— Tobacco Commission

Times News
Last updated: 2024/12/27 at 9:52 AM
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EAGER—Tobacco farmers prepare fields in Kasungu
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By Kingsley Jassi:

As the country expects a significant increase in tobacco output next year, concerning developments have worried industry regulator, Tobacco Commission (TC), as dry spells leave farmers panicking.

Telephorus Chigwenembe

TC spokesperson Telephorus Chigwenembe said in an interview that the commission has been receiving reports of signs of crop stress owing to prolonging dry spells in all the regions of the country.

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But he was quick to say the picture of the actual situation would become clear after an official assessment.

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“We are concerned with the status, having received worrisome reports from across all the regions.

“What remains now is to come up with the official assessment which will ascertain the actual situation on the ground,” Chigwenembe said.

The concerns were echoed by Tobacco Association of Malawi Trust President Abiel Kalima Banda, who said some farmers were using desperate measures such as manual irrigation to rescue withering crops.

“Some tobacco farms are not looking good and we are worried, especially for the tobacco that is still in nurseries waiting for rains,” Kaima Banda said.

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However, he expressed optimism that if the rains come, the situation could turn around as tobacco crops have a high rate of survivability.

He has since appealed to the industry, through the TC, to take into consideration the cost being incurred to rescue the crop when they will be setting prices for the next tobacco marketing season.

“Some farmers have to draw water from distant places in ox carts or cars to water their crops and that is not easy. Some don’t even have water sources close enough and are just watching their crop helplessly,” Kaima Banda said.

The dry spell has hit many parts of the country, creating worries over the performance of the agriculture sector, which is key to economic recovery next year.

However, the Department of Climate Change and Meteorological Services has indicated that rains would resume this week in some parts of the Southern Region, with widespread rains expected at the beginning of next week.

The authorities envisage an economic growth of 4 percent in 2025 after a meager 1.8 percent this year, banking on a good agricultural season on account of initially projected good rains.

Meanwhile, according to TC, buyers have indicated a 12 percent increase in tobacco demand next year, as they commit to buy 213 million kilogrammes (kg)

This is up from 190 million kg that was demanded last year, although farmers failed to meet that demand when they only supplied 133 million kg.

After increased interest in tobacco production, TC said it expected a 23 percent increase in tobacco volumes to 220 million kg.

In the 2024 marketing season, the country recorded a 40 percent increase in total sales, generating over $396 million, up from $283.76 million in 2023, setting record sales in over a decade.

With many neighbouring countries experiencing sharp drops in produced tobacco volumes, the country’s 40 percent increase was supported by increased competition by buyers, leading to the higher prices.

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TAGGED: Climate change, Telephorus Chigwenembe, Tobacco Commission

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Times News December 27, 2024
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