Malawi yesterday opened the 2025 Tobacco Marketing Season amid the same old story of some farmers grumbling about prices offered for the country’s green gold and politicians lauding the same as better than before.
To President Lazarus Chakwera, the start of sales offers a glimmer of hope and relief to the economy rocked with multiple crises, including foreign exchange shortages and paltry growth.
Prior to the President’s arrival at the country’s biggest tobacco market in Kanengo, tension engulfed the atmosphere as some farmers protested depressed prices that ranged between $1.20 (about K2 275) and $1.80 (about K3 150) per kilogramme (kg). There were, however, a couple of bales that fetched the highest price for the day at $3.20 (about K5 600) per kg.
This year’s highest opening price offering reflects a marginal improvement from the previous season when the top price was $3.11 (K5 445) per kg, a slight increase from the 2023 peak prices of $3 (K5 253) per kg and $3.03 (K5 305) at Kanengo and Chinkhoma Floors in Kasungu, respectively.
However, the 2008 opening day offer of $9.99 (about K17 000) per kg, which was a 425 percent increase from the previous season, remains the highest in the country’s tobacco marketing history.
In separate interviews yesterday, some farmers expressed concern that the prices do not match with rising input costs.
The frustrations culminated in protests that led to a temporary suspension of sales shortly before the President’s arrival at the floors.
Sales only resumed after the farmers held a short caucus and agreed to continue negotiations with buyers.
Tobacco grower Memory Chikuwi said: “Imagine buying fertiliser at K140 000 per 50 kilogramme bag, only for tobacco to fetch such low prices. This is unsustainable. If buyers cannot afford to pay us fairly, they should pack up and leave.”
Harrison Kachimera, another disgruntled farmer, chipped in: “We would rather keep our tobacco and explore alternative options than allow ourselves to be exploited.”
By the time Chakwera arrived, sales had resumed, but small groups of farmers could still be seen engaged in discussions.
Nyasa Manufacturing Company general manager Jack Basikolo, whose firm bought the leaf at $3.30 per kg, attributed the price fluctuations to variations in the quality of the tobacco leaf offered.
“Several factors influence the price. These include the type of leaf, its moisture content and the presence of moulds,” he said in an interview.
Minister of Agriculture Sam Kawale echoed Basikolo’s assessment, stating that the $1.20 per kg price applied to the bottom leaf which is typically of lower quality than the middle and upper leaf.
“Ideally, this grade of tobacco should have been discarded. However, out of commitment to farmers’ welfare, the buyers agreed to purchase it. ,” he said.
Speaking to journalists on the sidelines of the opening, Chakwera expressed satisfaction with the quality of tobacco and voiced confidence that it will attract fair and competitive prices.
He said: “The quality is good and buyers will offer competitive prices for the crop. We expect to see improvements in people’s welfare by the end of the season.
“I have engaged the buyers and will personally ensure that they respect the minimum prices.”
In his official remarks during the opening ceremony, the President stressed that tobacco remains central to Malawi’s economy, generating the foreign exchange needed to “manage online payments and pay for critical products and services such as fertiliser and fuel”.
This year, the Tobacco Commission (TC) has licensed about 54 370 farmers to produce 238.9 million kg of tobacco, against the buyers’ demand at 213 million kg. However, first-round estimates put output at 174 million kg.
In the previous season, Malawi earned $396.9 million (about K694.9 billion) from tobacco sales at an average price of $2.98 (K5 217) per kg.
Tobacco prices have remained a sticky issue in the country with never-ending wrangles over prices offered. In 2006, former president Bingu wa Mutharika introduced minimum buying prices to protect farmers from perceived exploitation. However, the move stirred tension between the government and buyers.
When prices tumbled after a record high of $9.99 per kg, Mutharika set minimum prices for the leaf in 2009 at $2.15 per kg for burley and $3.09 per kg for flue-cured.
