Malawi’s tobacco sales have registered a five percent increase in volume but suffered a significant revenue decline of $34.4 million in the current season compared to the same period last year.
This is according to the latest figures published by market operator AHL Tobacco Sales Limited.
Cumulative sales from April 9 to June 27, 2025, marking 12 weeks of sales, reached 126.6 million kilogrammes (kg) worth $319.5 million, compared to 120.4 million kg valued at $353.9 million during the corresponding period in 2024.
The revenue drop represents a 9.7 percent decline despite increased volumes, with average prices falling to $2.52 per kg from $2.94 per kg recorded in the previous season.
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Burley tobacco, which accounts for the bulk of sales, experienced the steepest price decline, dropping to $2.47 per kg from $2.88 per kg in 2024, a 14.2 percent decrease.
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Sales volumes for burley increased marginally to 116.2 million kg from 106.6 million kg, generating $286.8 million compared to $306.8 million in the previous season.
Flue-cured tobacco prices also declined to $3.24 per kg from $3.52 per kg, although volumes dropped significantly to 9.2 million kg from 12.2 million kg.
The reduction in flue-cured sales resulted in revenue falling to $29.8 million from $42.9 million, representing a 30.5 percent decline in earnings from this premium tobacco type.
Dark-fired tobacco showed mixed results, with volumes decreasing to 1.2 million kg from 1.6 million kg, while prices dropped slightly to $2.48 per kg from $2.65 per kg.
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The overall performance reflects persistent challenges in Malawi’s tobacco industry, including quality concerns and changing global market dynamics that continue to put pressure on prices despite increased production volumes. Vice president of the Tobacco Association of
Malawi Trust, Rhodes Sulumba, reiterated that while the market is functioning well, price levels have disappointed farmers.
“So far, we can see the market is going on well and the prices have at least improved, but it is not as much as compared to last season’s prices.
“Normally everybody wants good prices and looking at the prices this year, they are a bit lower compared to last season. We will at least achieve last year’s earnings due to the fact that this year we grew a lot of tobacco, not because of the prices,” Sulumba said.
In a recent interview, Tobacco Commission spokesperson Telephorus Chigwenembe said the market is recording a steady flow of tobacco, indicating good volumes of the crop this year.
“We also want to remind farmers and prospective farmers that preparation for the next season must start early. Right now, we have opened the tobacco licensing period starting June 23 to end October,” Chigwenembe said.
