MSE tobacco earnings hit $377.6 million
This year’s Tobacco selling season has come to the final phase with Mzuzu Market expected to close on August 2 while the rest have already closed.
The first to close was Chinkhoma Market, on July 12 while the country’s two main tobacco markets—Lilongwe and Limbe—closed yesterday.
The Tobacco Commission (TC) confirmed that the sales committee recommended the closure after noticing that much of the estimated 140 million kilogrammes (kg) of this year’s output has been sold in the past 13 weeks.
TC spokesperson Telephorus Chigwenembe said: “The sales committee of the tobacco industry in Malawi has proposed that the 2024 tobacco selling season close early August.
“The commision has since rated the 2024 selling season as one of the best in recent years in view of prices and smooth trading.
“Mzuzu selling floors will close last as trading in the Northern Region started late. The season, which was opened on April 15, will close after 16 weeks of trading.”
According to AHL Tobacco Sales Limited, 127.5 million kg were sold as of Tuesday this week bringing $377.6 million (about K661.1 billion at an average price of $2.96 (about K5182) per kg.
A recent AHL market update says at $2.96 per kg this year the seasonal average price of all tobacco types improved by about 26 percent as during a similar period last year, the average price stood at $2.32 (about K4062) per kg.
At $2.96, the average price slightly increased from the $2.95 (about K5 182) that was recorded in week 13, which Tobacco Association of Malawi Farmers’ Trust president Abiel Kalima Banda said is encouraging.
He said: “The progress of the market has always been impressive thus far for farmers who notice an increase of prices every week, particularly on burley tobacco which ensures they get a significant return of their investment.
“On flue-cured tobacco, the prices have not been impressive as they mainly revolve around the set minimum price without significantly gaining which is a bit of a concern to us and we are expected to discuss this with the buyers.”
Earlier, the Tobacco Commission expressed optimism that the country will meet its estimated production of 140 million kg as the season heads towards the closing stages.
This year’s tobacco season, which opened at Chinkhoma floors, has run smoothly despite cases of smuggling, especially of flu-cured tobacco.
