Tobacco earnings have hit $435 million (K762.3 billion) from 170 million kilogrammes (kg) which is 98 percent of the projected 174 million kg, figures from the Auction Holdings Limited (AHL) show.
According to AHL weekly report, the country has sold 170.8 million kg of tobacco as of Friday at an average price of $2.55 (K4 465) per kg compared to 133 million kg at an average price of $2.98 (K5 217) per kg for the same period last season.
This shows that the volumes surpassed last season’s 133 million kg that were sold at $396 million (K693 billion) although the earnings this year are subdued by low prices compared to last year.
In an interview, Tobacco Commission (TC) spokesperson Telephorus Chigwenembe said the increased volumes indicate that the country has produced more.
He said: “As a commission, we are excited that all indications show that we are on the right track towards our goal of attaining 200 million kg per year by 2030. Last season same period, 133 million kg were sold.
“This is a positive development for the country. At this point, there is more tobacco coming into the floors.
However, it is clear that as a country we are still not satisfying the trade demand declared earlier in the year at 213 million kg which means as a country we need to sell more as our tobacco is on high demand.”
In a separate interview, Tama Farmers Trust chief executive officer Nixon Lita described the season as mixed with increased flow of the leaf, but relatively lower prices.
He said: “The market is progressing well, and indications are that estimated tonnage might be achieved.
“In terms of price, we are still lower than same time last year but an improvement is being noted as upper leaf is dominating the market now.”
Lita has since urged farmers to start preparing for next season with registration, considering the hectarage and resources they can manage, especially fertiliser.
Earlier, agriculture and economic experts warned that low tobacco prices and the country’s continued dependence on the leaf for foreign exchange poses economic challenges.
Meanwhile, TC has opened farmers’ registration for the next season, running for four months from 23 June 2025.
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. This year, the country expects to produce 174 million kg.
