The Tobacco Commission (TC) has urged growers to ensure proper grading of their leaf as the marketing season opens today in Lilongwe, warning that global oversupply could dampen prices if quality standards are compromised.
TC’s warning comes at a time the 2026 Second Round Tobacco Production Estimates Survey indicated that Malawi is expected to produce 197 million kilogramme (kg), which is 14 percent higher than buyers’ demand of 170 million kg.
Reads the TC statement in part: “Presentation of perfectly graded good quality tobacco is the only sure way of enticing buyers to pay more for the tobacco and making Malawi’s crop more competitive.
“Globally, this year, production is higher than demand, leaving customers with a wide pool of countries to buy the crop from.”
In an interview on Saturday, TC spokesperson Telephorus Chigwenembe said the tobacco regulatory authority is aware of increased cost of production this year, but due to production surge in Malawi and globally, prices will most likely depend on quality.
“Tobacco growing countries in the world have this year produced more than what is required by customers, so if we present our tobacco poorly, it will attract poor prices. Secondly, our customers will not be impressed and will go to other countries,” he said.
TC warning comes at a time agriculture experts expressed fear that reduced demand and surging supply could bring market uncertainties that will likely affect prices even if the quality is good.
Agricultural extension services expert Leonard Chimwaza said in an interview that falling demand could dampen prices as supply will likely be high.
He said: “This is unfortunate. The tricky part is when demand decreases, prices may fall and that is not good for the industry. Weaker prices result in increasing cases of smuggling. Let’s hope the other companies will come on board to strengthen competition.”
Tama Farmers Trust president Abiel Kalima Banda said they are impressed with the quality of the leaf that farmers have produced this year due to favourable rains.
He said: “I am convinced that most farmers have produced quality tobacco because of the sensitisation campaigns that we conducted. Our survey also verified that favourable rains in most areas have ensured production of good quality tobacco.”
The Tobacco Marketing Selling starts today, with the official opening of Lilongwe Floors followed by Chinkhoma Floors in Kasungu tomorrow while Limbe and Mzuzu floors will open on April 23 and May 5, respectively.
The number of buying companies has this season dropped to eight from 11 and the firms are JTI Leaf (Malawi) Limited, Alliance One Malawi, Limbe Leaf Tobacco Company, Hail and Cotton (Malawi) Limited, Premium Tobacco Limited, Associated Central African Limited, African Tobacco Services and Nyasa Manufacturing Company.
Last year, Malawi also overproduced tobacco when it sold 221 million kg against the demand at 213 million kg, raising concerns about the regulator’s enforcement of production quotas.
Last season, TC licensed farmers to grow 174.4 million kg and ended up growing 221 million kg out of 213 million kg buyers’ demand.
The leaf was sold at $2.46 (about K4 307) per kg, raising $539.4 million (about K944.66 billion) in earnings.
Tobacco remains Malawi’s main foreign exchange earner and contributes about 60 percent to the country’s foreign exchange earnings and 13 percent to the economy.
