The tobacco rejection rate on the auction system has eased by almost half to 40 percent while average prices worsened in week seven of sales, a development that has attracted mixed reactions from industry stakeholders.
Both the Tobacco Commission (TC) and AHL Tobacco Sales Limited weekly sales reports indicate that the auction market rejection averaged 40 percent from as high as 98 percent during initial stages.
Reads the AHL Tobacco Sales Limited report: “Reduced participation of buyers on auction market resulted in the high rejection rate of burley tobacco from week one of sales through week five.
“No sale rejection rate was as high as 98 percent in week one and 80 percent in week five of the 2026 tobacco marketing season. The rate slightly improved in week seven where it reduced to 46 percent.”
Cumulative sales were recorded at $106.8 million (K187 billion) from 51 million kilogrammes (kg) at an average price of $2.08 (K3 642) per kg compared to $143.6 million (K251 billion) from 59 million kg at $2.43 (K4 254) per kg for the same period last year.
In an interview on Tuesday, TC spokesperson Telephorus Chigwenembe described the development as a sign that buyers’ appetite towards auction market is changing, saying the commission is hopeful that the trend will continue.
“This signals an improvement in the buyers’ appetite for auction tobacco which is good for farmers. We are hopeful that this trend will continue and the situation will improve further,” he said.
The rejection rate has dropped from about 98 percent in the first weeks of tobacco sales, signalling a positive trend on the market.
However, the improvement of rejection came in a week when weekly average price dropped by one percent to $2.02 (about K3 537) per kg from the cumulative average $2.08 (about K3 642) per kg.
Tama Farmers Trust president Abiel Kalima Banda attributed the improvement to clearing sales of the once rejected bales.
He said the drop is coming at the expense of growers as they are desperate to see their tobacco bought even at lower prices considering that it was already rejected.
“The rejection is only on auction tobacco market not contract. When tobacco is rejected, it is brought back on the market after three days or a week but the tobacco is eventually sold at a lower price,” he said.
The current cumulative average price of $2.08 (about K3 642) per kg is 14.4 percent lower than same period last year when prices averaged $2.43 (about K4 254) per kg, according to TC records.
TC is on record as having warned farmers that overproduction, both locally and globally, means quality and grading will be critical to securing better prices.
Malawi is forecast 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.
The number of buying companies has fallen to eight from 11 last season, raising concerns that demand will weaken further.
The buyers this year are 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 grew 221 million kg against licensed volumes of 174.4 million kg and demand of 213 million kg.
The leaf fetched an average of $2.46 (K4 307) per kg, generating a record $542 million (about K944.66 billion).
