Tobacco sales hit $65m, TC warns against smuggling
Tobacco earnings have hit $64.7 million (K113 billion) in the fourth week of auctioning and the opening of Mzuzu floors on Tuesday means all the markets are now in action.
According to market update from Tobacco Commission (TC), $64.7 million (K113.2 billion) has been realised after selling 24 million kilogrammes (kg) of the leaf at an average price of $2.68 per kg (K4 692) 20 days since the season opened on 15 April at Chinkhoma floors.
Last year, same period, the country realised $28.4 million (K49.7) after selling 13.8 million kg of all types of tobacco at an average price of $2.05 per kg (K3 589).
At $2.68, (K4 692) the average price has slightly increased from last week when it was recorded at $2.67 per kg (K4 675) and it was apparently observed on the day Mzuzu auction was opened on Tuesday, May 7 2024.
TC spokesperson Telephorus Chigwenembe said the rising prices should instill hope to farmers to remain patient and avoid smuggling the leaf to neighbouring countries.
“With increasing prices it is our hope that growers will see that there is no reason to sell their tobacco to middlemen or to attempt to smuggle the crop out of the country, they lose out a lot when they do that because law enforcers are on the lookout.
“Two weeks ago police in Mchinji impounded a lorry carrying 48 bales of flue cured tobacco. As TC, we sold that tobacco under TC licence and there will be penalties and it is the smugglers that will lose out,” Chigwenembe said.
Tama Farmers Trust President Abiel Kalima Banda said overall the market is progressing well with better than the government-set minimum prices continue being realised in burley tobacco, although with some reservations in flue-cured.
“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.
“However, our concern is on flue-cured, which we observe that buyers are only offering in line with the government minimum prices, and we hope they will improve on that one,” Kalima Banda said.
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 finish on August 4, according to TC.
