Malawi has realised $37 million from sales of 13.9 million kilogrammes (kg) of tobacco in the first two weeks of this year’s marketing season, figures released by market regulator, Tobacco Commission (TC), show.
The crop has been sold at an average price of $2.64 per kg.
This represents a 131 percent increase in tobacco earnings when compared to the $16 million realised after selling 8.1 million kg of tobacco at the end of week two in 2023.
The average price has grown by 32.66 from $1.99 recorded during the same time last year.
In an interview, TC spokesperson Telephorus Chigwenembe said tobacco trading is going on well at the floors, with higher volumes and average prices this year. “Despite some delays in payments for farmers, we are happy that in the first two weeks of this tobacco marketing season, trading is going on very well, in terms of both volumes and prices. In fact, things look better than last season.
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“We are also happy that the rejection rate remains low this year, although we have had a few cases of nesting, especially in Limbe. And on this, we would like to warn farmers to stay away from this type of cheating because it will not go unpunished,” Chigwenembe said.
Tobacco Association of Malawi Trust President Abiel Kalima Banda said the market performance would help boost growers’ appetite for production next year.
“We have been failing to meet the demand just because of prices. This season, we are expecting production below demand because farmers were not happy.
“But next year, we expect more farmers to produce tobacco. We may even hit 200 million kg because they will envy those earning these prices now,” Kalima Banda said.
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The country is expected to sell 140 million kg of tobacco to the market this year, 50 million kg shy of the 190 million kg demand by tobacco buyers.
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.
