Malawi tobacco revenue 11% above projection

With four weeks before the end of the marketing season,tobacco revenue hit $333.55 million in week 20, about 11 percent above this year’s initial projection of $300 million, official figures indicate.

Auction Holdings Limited (AHL) statistics show that in week 20, the country earned foreign exchange amounting $18.19 million from a total of 7.9 million kilogrammes (kg) of tobacco.

The statistics indicate that in the week under review, the leaf averaged $2.29 per kg down by $0.07 compared to the previous week.

“For the second week in a row, average prices fell on all but dark fired which maintained a constant average price, indicating a low completion on the market. Volumes sold on the on the major crops (burley and flue) again continue to plummet with flue cured experiencing the largest drop of 10 percent.

“Stock holding at the Lilongwe floors reached low levels of 28 percent of capacity elevating possibility of end of major sales in the coming week. During the same period in 2012 season, cumulative average was at $2.23 compared to $2.15 of current season,” reads AHL commentary in part.

During the week under review, burley average price fell by $0.03 to $2.22, flue cured fell to $2.95 by $0.23, while dark fired was stuck at $1.94 per kg.

In the week, about 6.6 million kg of burley were sold, 0.9 million of flue cured and 0.4 million of dark fired.