Proceeds of tobacco sales jumped by 68.3 percent to reach $143.9 million after the sale of 51.8 million kilogrammes (kg) at the end of week six of tobacco sales, figures from AHL Tobacco Sales Limited show.
This is in comparison to the $85.5 million the country fetched from selling 38.9 million kg of tobacco during the comparative period last year.
This means that in just six weeks, the country has realised more than half of the $282.62 million that Malawi earned after selling 120 million kg of tobacco at the end of the 2023 season.
“The increase in tobacco sales volume and upward trend in prices contributed to the higher earnings from tobacco sales in 2024 season, compared to those realised in 2023.
“The average price of $2.78 per kg was recorded at six weeks in 2024 compared to $2.19 per kg recorded during the same period last year, representing a 27 percent increase in the average price,” a weekly tobacco update by AHL reads.
Tobacco Association of Malawi Trust Vice President Rhodes Sulumba said farmers are happy with how the market is progressing this far.
“All is well in all the markets. We are impressed with the prices the buyers are offering. For example, a good grade is getting up to $3.35 and in some cases $4 per kg, which is commendable for us.
“In previous years, there used to be a lot of no sale on some of the tobacco or a significant rejection rate, which was discouraging farmers,” Sulumba said.
Tobacco Commission (TC) spokesperson Telephorus Chigwenembe said the commission is equally impressed with the market trends.
“This far, we have a good basis to be confident that 2024 will be one of the best tobacco selling seasons in recent times. We have seen the average price per kg going up every week.
“By week five, it was $2.74; by week four, it was $2.70; by week three, it was $2.67; by week 2, it was $2.64 and in week one, the average price per kg was $2.57. Similarly, the tobacco earnings have been higher than last year each passing week,” Chigwenembe said.
Tobacco is Malawi’s major export crop.
Currently, TC is garnering support from stakeholders to boost production to 200 million kg by 2026 in a bid to increase foreign exchange earnings from the crop.
