Ministry of Agriculture has authorised the Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) to start buying tobacco to clear tobacco bales not absorbed by traditional buyers during the 2025 Tobacco Marketing Season.
In a statement signed by Principal Secretary (PS) Dickxie Kampani, the ministry said SFFRFM has already started buying the tobacco at the auction floors.
The ministry said government recognises and values the contribution of the tobacco industry to the livelihoods of Malawians and to the economy at large; hence, the decision to come in to continue buying tobacco to protect the industry.
Reads the statement in part: “The government assures all tobacco growers that it remains committed to providing a reliable and sustainable market for their crop. Tobacco continues to be Malawi’s leading export commodity.
“The government reassures the entire tobacco-growing community of its full support and affirms that it will provide all necessary resources to the SFFRFM to complete this purchasing initiative successfully.”
Kampani could not be reached for comment on finer details such as the money allocated and whether it was budgeted for. Minister of Agriculture Sam Kawale also did not respond to a questionnaire The Nation sent him on the matter.
On the other hand, SFFRFM spokesperson Grace Thipa asked for more time to consult on the matter.
Meanwhile, Tobacco Association of Malawi (Tama) president Abiel Kalima Banda yesterday described the move as a big relief to farmers whose tobacco had not been sold.
Speaking in an interview, he said farmers invested a lot in growing their tobacco and it is only through selling that they can recover the investment and make profit.
Said Banda: “As a farmer, it is good news to hear that all the tobacco will be bought. Of course, we produced more than what was demanded but we are happy that the tobacco will be bought.”
However, he said most farmers have sold their tobacco and those remaining are from districts located far from the auction floors.
The 2024/25 tobacco selling season was scheduled to close on September 12 but government extended the period and said new closing dates will be announced in due course. The extension was due to significant volumes of unsold tobacco at the Lilongwe, Chinkhoma and Mzuzu auction floors.
As of September 11, the country had sold 209.8 million kilogrammes (kg) of tobacco valued at $525.4 million, the average price being $2.50/kg. The revenue generated is Malawi’s highest in 13 years.
