Tobacco revenue has hit $108.6 million (about K190 billion) in five weeks of sales, an AHL Group weekly tobacco sales update shows.
The earnings are 67.4 percent higher than what was realised in the first five weeks of sales last year.
The data further shows that 39.6 million kilogrammes (kg) of all types of tobacco have been sold, which is more than 30.1 million kg sold in that period last year.
“The tobacco is being sold at an average price of $2.74 [about K4 797] per kg this year compared to $2.15 (K3 754) per kg registered during the same period last year,” reads the update in part.
The update further shows an average price improvement of flue-cured tobacco of 11 percent during the week while burley average price gained by three percent and dark fired had a marginal increase of one percent.
Tobacco Commission spokesperson Telephorus Chigwenembe said in an interview yesterday that they are impressed with the prices as they are better than last year.
He said: “We have not had market interruptions except the day farmers requested a temporary suspension of trading at Lilongwe Floors due to delayed payment of proceeds. We are happy that the situation has been resolved.”
Despite the higher prices, this year’s marketing season has a downside on the access of the proceeds as farmers spent weeks without receiving their earnings.
In an earlier interview, AHL Group board chairperson Dan Makata said several factors led to the delays, including reconciliation issues.
He said: “There were also some delays in the bank clearing system because tobacco is sold in US dollars and such transactions take some time.
“There were also some delays by some banks to process tobacco sales payments into growers’ and transporters’ accounts even after AHL had processed the payments.”
Tama Farmers Trust president Abiel Kalima Banda said the prices are good this year compared to last year and farmers are excited.
This year’s tobacco output increased by 17 percent to 140 million kg, but is below the international trade requirements at 190 million kg.
Tobacco remains Malawi’s main foreign exchange earner.
