Tama Farmers Trust has described this year’s Tobacco Marketing Season as beneficial to farmers, commending the regulator for extending the market to October 24 to ensure farmers sell all their leaf.
Commenting on the longest tobacco selling season that started in April, Tama Farmers Trust president Abiel Kalima Banda advised farmers to stick to production quotas in the 2025/26 growing season to avoid elongating the season and affecting preparations for the next growing season.
He said: “As Tama Farmers Trust, we are grateful to TC [Tobacco Commission] because we were worried that some farmers could end up failing to sell their tobacco, but this is not the case.
been one of the longest. | Nation
“Our message to farmers is that in the coming growing season, they must adhere to their production quotas to avoid a similar situation where tobacco is over-produced and the selling season is prolonged like in this case. This affects planning ahead of the next season.”
As the tobacco selling season winds up this Friday, the leaf has raked in $537.9 million (K941.8 billion) compared to $396 million (about K693 billion), according to latest AHL Group Limited weekly market update.
The leaf was sold at an average price of $2.47 (K4 324) per kg, lower than last year’s average price of $2.98 (about K5 217) per kg.
Experts say although revenue grew by 35 percent this year due to increased volumes, the value could have reached $649 million (K1.1 trillion) if prices were to remain at last year’s level.
In separate interviews yesterday, agriculture and economic experts warned that low tobacco prices and the country’s continued dependence on the leaf for foreign exchange poses economic challenges.
Mwapata Institute research fellow Christone Nyondo said low tobacco prices could harm the country’s foreign exchange reserves and trade balance, considering that the crop is the country’s main export.
“The market structure is dominated by an oligopoly. Buyers can collude to maintain low prices while farmers, especially smallholders, have little bargaining power,” he said.
On his part, agriculture policy development expert Tamani Nkhono-Mvula in an interview warned that if such pricing patterns persist, the country’s fragile macroeconomic position could worsen.
“The government should strengthen farmer cooperatives and create transparent price-setting mechanisms. Otherwise, farmers remain at the mercy of market forces beyond their control,” he said.
In an earlier interview, TC spokesperson Telephorus Chigwenembe said the commission is happy that the country has produced over 200 million kg of tobacco, stressing that increased volumes mean more foreign exchange earnings.
He said farmers have been assured that the remaining volumes will be sold.
“We have seen that most of the tobacco has been sold and what is remaining can be sold out in the remaining time,” said Chigwenembe, adding that registration for the next season is still ongoing.
Former president Lazarus Chakwera opened the 2025 Tobacco Marketing Season on April 9 at Lilongwe Floors when farmers protested the minimum prices.
Initially, the crop production estimate survey indicated the country would produce 174.4 million kg of tobacco, but later the Ministry of Agriculture said production increased due to improved weather conditions towards the end of the growing season.
Tobacco remains Malawi’s main export crop, contributing more than 50 percent to the country’s foreign exchange earnings and 13 percent to the economy.
