Tobacco prices swell 22% in second week
Tobacco prices picked up during the second week of sales mainly due to commencement of Flue Cured tobacco sales reaching as high as $4.20 per kilogram.
The amount is higher when compared to the $2.50 price recorded on the opening day at Limbe Auction Floors.
A sales weekly report released by the Tobacco Commission (TC) Monday indicates that 6.2 million kilograms (kgs) of all types of tobacco were sold by the end of the second week at an average price of $1.56.
The average price is 22 percent higher when compared to the $1.28 recorded at the end of the second week.
The report further shows that the country has realised $9.7 million from the sales, representing a 27 percent increase compared to $7.5 million earned during the same period last year.
In an interview, TC Chief Executive Officer, Kaisi Sadala, said the trend is encouraging.
“It has been a good starts of the market. We hope and believe that this trend will continue. Remember we have a new buyer on the market and low supply than the demand, so we anticipate enhanced competition,” Sadala said.
Tobacco Association of Malawi (Tama) Chief Executive Officer, Felix Thole, said the outlook remains promising.
“Take note that a good number of the buyers have started buying a bit late as they were sorting out some logistics,” Thole said.
Last year the country sold 165.6 million killogrammes of tobacco realizing $237 million at an average price of $1.43.
Tobacco remains the country’s major foreign exchange earner.