Tobacco forex hits $486.8m in 18 weeks

Tobacco hA raked in $486.8 million (about K852.8 billion) in 18 weeks of sales with Limbe Floors in Blantyre becoming the first to close last Friday.

Tobacco Commission (TC) spokesperson Telephorus Chigwenembe said Limbe Floors, which opened for sales on April 14, has closed and will be followed by Chinkhoma Floors in Kasungu and Lilongwe Floors on August 15.

The last to close will be Mzuzu Floors on August 29 after 21 weeks of sales.

TC data show that after 18 weeks, tobacco revenue has peaked at $486.8 (about K852.3 billion) after selling 191.3 million kilogrammes (kg) of the leaf at an average price of $2.54 (about K4 447) per kg.

However, at $2.54 per kg, the price  dropped from $2.55 (about K4 465) per kg recorded during the previous week.

But Chigwenembe expressed satisfaction with the market’s progress, observing that the 2025 tobacco production is the highest in six years.

He said: “We have seen smooth trading and we have seen big volumes coming onto the markets.

“We take it as an indication that it is possible for the country to attain our goal of an annual production of 200 million kg in 2030.”

In a separate interview on Friday, Tama Farmers Trust chief executive officer Nixon Lita said the increased production is a result of better prices offered in 2024 and has urged tobacco stakeholders to start preparing for next season.

He said: “So far, indications are that we are going above earlier estimated production and this can be related to demand created by the 2024 prices.

“As farmers are going back to nurseries in preparation for the 2025/26 season, there is a need for stakeholders to work on an increased market so that farmers can finish sales in good time and concentrate on farm work.”

Ministry of Agriculture deputy director of field crops Osborne Tsoka said the country produced more tobacco this season because of improved weather conditions towards the end of the rainy season.

He said: “The reason for the increase might be changes in the weather patterns, particularly rainfall. At the time the teams were conducting the second round estimates survey, most parts of the country had dry spells and the crop was not looking like it will get to its potential.

“However, soon after that, many areas received good rainfall and the crop stands improved. However, even if we reach 190 million kg, we would still be within the acceptable limits of the projections, which is plus or minus 10 percent.”

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.

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