MALAWI: Tobacco Earnings Drop by $36 Million as Farmers Express Frustration

By Smile Hamilton

Malawi’s earnings from tobacco sales this year continue to lag behind figures recorded during the same period last year, a development that has left many farmers concerned about their returns.

As of June 5, the country had generated $107 million (K187.6 billion) from the sale of 51.5 million kilograms of tobacco at an average price of $2.08 per kilogram.

This is lower than the $143 million (K250.4 billion) earned during the corresponding period last year, when Malawi sold 59 million kilograms of tobacco at an average price of $2.43 per kilogram.

According to the Tobacco Commission, the decline has largely been attributed to high tobacco rejection rates recorded during the first weeks of the marketing season, which opened on April 20.

The commission said rejection rates reached as high as 98 percent during the early stages of trading, affecting both sales volumes and earnings.

Meanwhile, some farmers have expressed dissatisfaction with the low prices and high rejection rates, arguing that they are not receiving adequate returns despite rising production costs.

Tobacco remains Malawi’s leading foreign exchange earner, and stakeholders are hoping that improved quality and stronger demand in the remaining weeks of the marketing season will help boost earnings and improve returns for growers.