Malawi’s tobacco revenue jumped by $22.97 million to $257.57 million in week 16, to reach about 85 percent of this season’s target of $300 million, according to figures from the Auction Holdings Limited (AHL).
The current revenue level is only $42.48 million short of the 2013 target which is likely to be outstripped in the following two weeks based on revenue realised in weeks 15 and 16 of about $24 million and $23 million respectively.
“Burley average prices in week 16 moved by $0.11, the largest positive variance on burley for the season. Weekly volumes sold continued to plummet, with burley volumes dropping by 13 percent on volumes sold in week 15.
“The continued drop in volumes resulted in increased competitions resulting in the market witnessing the highest burley average price of $2.55 per kilogramme. Revenue earned to date outstrip total revenue for 2012 season by 45 percent,” reads a commentary from AHL.
Recently, the Tobacco Control Commission chief executive officer, Bruce Munthali was quoted as saying the market is moving fast and there has been substantial inflow of tobacco, more especially burley.
He attributed the continued stability of the tobacco market to recent reforms that the tobacco industry has embraced from this year’s marketing season in March.
Munthali said both earnings and the significant volume of tobacco sold, so far, speak volumes that the market is on course which, he said, will necessitate Malawi to earn increased revenue than that of other years.
The AHL statistics indicate that in week 16 average burley prices shot to $2.29 from $2.18 per kg, flue cured dropped to $3.35 from $3.41 per kg, while dark fired rose to $2.29 from $2.34 per kg in the previous week.
The data further indicate that up to week ending June 28, the country sold over 123.5 million kg which includes 106.6 million kg of burley, 14.3 million kg flue cured tobacco and 2.6 million kg of dark fired tobacco.
As at week 16, the country raked in $207.74 million from burley, $44.11 million from flue cured and $5.71 million from dark fired.
In week 16, the country raked in $16.90 million from burley, $5.67 million from flue cured, and $0.41 million from dark fired.
Analysts have so far attributed the bolstering of the official foreign exchange reserves which hit an equivalent of 2.43 months by June 26 2013.