Tobacco prices have remained unimpressive three weeks after the 2025 Tobacco Marketing Season opened on April 9, prompting farmers to appeal for government’s intervention as the situation risks plunging them into poverty.
Tama Farmers Trust president Abiel Kalima Banda, speaking after monitoring sales at Lilongwe Floors in Kanengo inthe capital city on Tuesday where most of the leaf was bought below $2 (about K3 502) per kilogramme (kg), said low-grade leaf is fetching low prices compared to last season.
the opening day. | Nation
He said if the situation continues, most farmers will not make meaningful earnings to pay back loans and buy inputs for the next growing season.
Said Kalima Banda: “I have seen most bales going at $1.20 (about K2 101) per kg. Last season same period there were not less than $2 prices offered for similar grades and personally I do not understand.
“The highest price I have seen is $3.20 (about K5 603)per kg and even the few bales that attracted this price were facing bargains.”
He pleaded with the government through the Tobacco Commission (TC) to engage the buyers to offer good prices to meet the rising cost of production occasioned by rising cost of inputs such as fertiliser and chemicals.
In a brief response yesterday, Tama Farmers Trust chief executive officer Nixon Lita said they will review the situation to chart the way forward.
“So far, we have had no protests since the Chinkhoma one last week. So far, prices are good, all grades are being bought at above the set minimum prices. Higher quality leaf is being rewarded more than lower quality,” he said.
TC spokesperson Telephorus Chigwenembe was not immediately available for comment, but in an earlier statement, he said there is no minimum price for the country’s tobacco as each grade has its own minimum.
He said: “In Malawi, there are 52 grades for burley tobacco; 99 for flue-cured and virginia and 48 grades for dark-fired tobacco. A minimum price is set for each of these grades. This means there are 199 minimum prices of Malawi tobacco.”
Meanwhile, agriculture and economic experts have warned that low tobacco prices and the country’s continued dependence on the leaf for foreign exchange, poses economic challenges.
Mwapata Institute research fellow Christone Nyondo said in an interview on Tuesday that if prices offered at the tobacco floors persist, they could harm the country’s foreign exchange reserves and trade balance.
He said this means that the Reserve Bank of Malawi may find it challenging to stabilise the kwacha, leading to increased import prices for essentials such as fuel, fertiliser and medicines.
“The market structure is dominated by an oligopoly. Buyers can collude to maintain low prices while farmers, especially smallholders, have little bargaining power,” said Nyondo.
On his part, agriculture policy development expert Tamani Nkhono-Mvula, warned that if such pricing patterns persist, the country’s fragile macroeconomic position could worsen.
“The government should strengthen farmer cooperatives and create transparent price-setting mechanisms. Otherwise, farmers remain at the mercy of market forces beyond their control,” he said.
Last season, Malawi earned $396 million (about K693 billion) after selling 133 million kg of tobacco at an average price of $2.98 (about K5 217) per kg.
