tobacco generates $28m in three weeks
Malawi has realised $28 million (about K28.63 billion) from tobacco in three weeks of sales, figures from market operator, Tobacco Commission (TC) have shown.
The revenue is about $27.04 million (about K27.60 billion) higher than the $960 000 (about K981.6 million) earned during the same time last year.
During the same period last year, the average price per kilogramme (kg) was at $1.49 (about K1 492.85) compared to $2 (about K2045) per kg the leaf is fetching this year.
In an interview on Thursday, TC spokesperson Telephorus Chigwenembe said the commission is optimistic of a good tobacco market season on account of good prices and low rejections.
According to the commission this year’s tobacco marketing season has been the best so far, with better prices being offered to farmers.
Said Chigwenembe: “As Tobacco Commission, we are happy with the progress of this year’s selling season because of the prices and the rejection rate, which is almost zero.
“In the first three weeks of the tobacco selling season, we have seen buyers offering reasonable prices and we appeal for more of this or even much better prices so that tobacco growers should be motivated to grow more next farming season.”
Meanwhile, tobacco farmers have described the current tobacco market as mixed, saying although prices are higher than the previous year, high costs of production of the crop this year could affect the gains.
James Guja, a seasoned Zomba-based tobacco farmer, while commending buyers for adhering to the set minimum prices, which he indicated are higher than last year’s, said farmers may not get the most from their labour.
“We have accumulated loans with our buyers but also invested a lot on production. We have really spent a lot. We plead for a consideration on the prices so that we get the most of the labour vested in this kind of farming,” he said.
Tama Farmers Trust president Abiel Banda is also on record as having said prices are better this year but the cost of production is likely to eat into farmer’s incomes.
This year national production volumes, according to the TC, are 126 million kilogrammes (Kg) of tobacco against buyer volume demand of 170 million kilogrammes.
In the 2022 marketing season, cumulatively the country earned $182.10 million (about K186.09 billion) from tobacco sales, which is lower than $250 million that the country requires for its monthly import cover.
During the same year, the country sold 85 million kg of tobacco with the seasonal average price of all tobacco types at $2.14 (about K2 188.85) per kg, compared to $1.59 (about K1 625.78) per kg recorded during the same period in 2021.
Tobacco remains the country’s major forex earner, contributing about 60 percent of the country’s forex revenue.
