Tobacco revenue at K318.6bn in 7 weeks
Earnings from tobacco, the country’s major foreign exchange earner, have hit $182 million (about K318.6 billion) in seven weeks of sales, Tobacco Commission (TC) and AHL Group market updates have shown.
In its update released yesterday, AHL Group said 64.7 million kilogrammes (kg) of all tobacco types have been sold this year, representing a 28.6 percent increase in sales volume after seven weeks of sales compared to 50.3 million kg traded during the same period last year.
The update reads in part: “By the end of week seven, the seasonal average price stood at $2.81 [about K4 920] per kg, a marked increase of 26 percent this year, compared to 2.23 (about K3 904) per kg recorded during the same period last year.
“To date, proceeds from the already traded tobacco, the country has earned $183 million this year, representing 62 percent in sales revenue, compared to $112.1million realised from tobacco sales during the similar period last year.”
TC spokesperson Telephorus Chigwenembe said the performance offered a good basis to be confident that 2024 will be one of the best tobacco marketing seasons in recent times as the average price is increasing weekly.
He said: “We have seen the average price per kg going up every week. By week five, it was $2.74 per kg [about K4 797], by week four, it was $2.70 per kg [about K4 727].
“By week three, it was $2.67 per kg [about K4675] while by week two, it was $2.64 per kg [about K4 622] and in week one, the average price per kg was $2.57 [about K4 500]. This means increased earnings for tobacco farmers and improved forex inflow.”
Going by TC’s figures, the price has increased by an average of four cents per week since President Lazarus Chakwera opened the season at Chinkhoma Floors in Kasungu in mid-April 2024.
Tama Farmers Trust president Abiel Kalima Banda said overall the market is progressing well with better than the government set minimum prices being realised from burley tobacco although with some reservations on flue-cured leaf.
“The market is still progressing to the advantage of farmers because prices remain impressive. I have seen the highest price hitting $3.15 per kg [K5 515], especially for burley which is giving hope to tobacco farmers,” he said.
But Banda said farmers were concerned with prices of flue-cured tobacco which is being bought at government minimum prices.
This year, the country is projected to produce 140 million kg against the buying companies’ demand of about 190 million kg.
The tobacco season, which started on April 15, is expected to run for 17 weeks to finish on August 4, according to TC.
