Malawi’s tobacco earnings have reached $180.9 million (about K316.7 billion) after 11 weeks of trading, with 87 million kilogrammes (kg) sold at an average price of $2.07 (about K3 624) per kg.
Prices remain below last season’s levels, with stakeholders saying this reflects weaker demand and fewer buyers.
According to AHL Tobacco Sales Limited, sales are down from the same period last year when 98.5 million kg fetched $245.6 million (about K430 billion) at an average price of $2.49 (about K4 359) per kg.
The decline represents a 16.5 percent drop in average prices, according to the data.
AHL’s report has cited oversupply and reduced buyer participation as key factors.
“In the 2026 tobacco marketing season, there has been a downward trend in the average price of tobacco per kg due to the projected country’s overproduction,” reads the report.
Malawi is projected to produce 197 million kg of tobacco this year, 14 percent above buyers’ demand of 170 million kg, according to the Second Round Tobacco Production Estimates Survey.
Tama Farmers Trust president Abiel Kalima Banda, in an interview on Sunday, said prices remain below production costs, particularly on auction floors.
“They say the low prices are because of overproduction, but I believe buyers would have bought their quotas at appropriate prices and left the excess tobacco,” he said.
On his part, Tobacco Commission spokesperson Telephorus Chigwenembe said the market is progressing well despite challenges, including high rejection rates on auction floors.
“It’s a good thing to see that overall most of the tobacco taken to the floors is being sold,” he said.
During the first days of opening, rejection rate hit as high as 98 percent and it eventually dropped to around 60 percent.
The number of active buyers has also fallen to eight from 11 last season, raising concerns about further pressure on demand.
This year’s buyers include JTI Leaf (Malawi) Limited, Alliance One Malawi, Limbe Leaf Tobacco, Hail and Cotton (Malawi), Premium Tobacco, Associated Central African, African Tobacco Services and Nyasa Manufacturing.
Last season, farmers produced 221 million kg of tobacco against licensed volumes of 174.4 million kg and demand of 213 million kg.
The crop generated a record $542 million (about K949 billion) at an average price of $2.46 (about K4 307) per kg.
