Malawi has earned $260.8 million (about K456.6 billion) from tobacco after 16 weeks into the marketing season, with 130.2 million kilogrammes (kg) of the leaf sold at an average price of $2 (about K3 502) per kg, figures from AHL Tobacco Sales Limited show.
This compares with 161.9 million kg sold during the same period last year at $412.5 million (about K722.2 billion), representing at an average price of $2.55 (K 465) per kg.
Based on final production tobacco estimates of 154.9 million kg, it means about 24.7 million kg remains unsold.
The report further shows the national average price for all tobacco types has dropped by 21.2 percent from last year’s $2.55 (about K4 465) to $2 (K3 502) per kg.
“This reflects subdued buyer demand and lower prices compared to the 2025 season,” reads the report.
Tama Farmers Trust president Abiel Kalima Banda said in an interview yesterday that the season is nearing completion, but has been disappointing for growers.
He said: “It has not been a good year. The average price of $2 per kg does not reflect the cost of production and is demotivating to farmers.
“Initially, we were meant to believe that prices were affected by overproduction, which was not the case.”
Earlier, Tobacco Commission (TC) estimated that the country would produce 197 million kg of tobacco, raising fears of oversupply.
Last year, TC projected output at 174.4 million kg against buyers’ demand of 213 million kg, but actual output increased to 221 million kg.
Last season, Malawi raked in a record $542 million (about K949 billion) in earnings.
