Tobacco earnings have hit $530 million (K927 billion) after 25 weeks of sales in a season that has been prolonged due to a significant rise in production.
According to Auction Holdings Limited weekly sales update, 212 million kilogrammes (kg) of tobacco have been sold so far, raking in $529 million at $2.49 (K4 359) per kg.
Meanwhile, Tobacco Commission (TC) spokesperson Telephorus Chigwenembe said three markets, namely: Lilongwe, Chinkhoma and Mzuzu are still open to ensure that all the leaf is sold.
“The 2024/2025 tobacco selling season was due to close on September 12. New closing dates will be announced in due course. The extension is aimed at allowing all farmers to sell their tobacco,” he said.
Ministry of Agriculture authorised the Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) to buy the remaining tobacco bales that have been left by the traditional buyers.
The ministry’s Principal Secretary Dickxie Kampani said government recognises and values the contribution of the tobacco industry to the livelihoods of Malawians and to the economy at large; hence, the decision to come in to continue buying tobacco to protect the industry.
“The government assures all tobacco growers that it remains committed to providing a reliable and sustainable market for their crop. Tobacco continues to be Malawi’s leading export commodity.
“The government reassures the entire tobacco-growing community of its full support and affirms that it will provide all necessary resources to the SFFRFM to complete this purchasing initiative successfully,” Kampani said in a statement.
Tobacco Association of Malawi president Abiel Kalima Banda described the move as a big relief to farmers.
Said Banda: “As a farmer, it is good news to hear that all the tobacco will be bought. Of course, we produced more than what was demanded but we are happy that the tobacco will be bought.”
Initial market demand or international trade requirement for this year was pegged at 213 million kg while the second round crop production estimate survey put the output at 174.4 million kg.
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.
Tobacco still remains Malawi’s main export crop, contributing more than 50 percent to the country’s foreign exchange earnings and 13 percent to the economy.
