Tobacco earnings continue to impress: Hits $258.2 million in 9wks of sales
Proceeds from the country’s major export crop, tobacco reached, $258.2 million at the end of last week or week nine of tobacco sales, figures from the market operator, AHL Tobacco Sales, show.
A weekly tobacco update published by AHL indicates that the 2024 price trend has always been higher throughout the entire nine weeks of sales, compared to that sold during a similar period in 2023.
“A significant improvement of 25.9 percent was recorded, at an average price of $2.87 per kg after nine weeks of sales this year, compared to $2.28 per kg registered during the same period last year.
“At the end of business on Friday a total of 89.9 million kilogrammes (kg) of tobacco had been traded, from which the country has realised $258.2 million after nine weeks of sales this year, compared to 73.1 million kilograms of all tobacco types sold which generated $166.7 million during the same period last year,” the update reads.
Meanwhile the Tobacco Commission (TC) has commenced farmer registration for growers intending to produce tobacco in the coming growing season.
This is coming at a time expectations are high that the number of farmers will increase owing to current price trends on the market.
In a published statement the TC informs all tobacco growers, grower associations and tobacco buyers that grower registration and licensing for the 2024-25 growing season starts Monday, June 17 2024.
“All Malawians interested to grow and sell tobacco in the forthcoming season are therefore being advised to go to any of the Commissions divisional offices in Lilongwe, Kasungu, Mzuzu and Limbe for registration and licensing,” the statement reads.
The country is expected to sell 140 million kg of tobacco to the market this year, 50 million kg shy of the 190 million kg demand by tobacco buyers.
During the 2023 tobacco marketing season, Malawi earned $282.62 million after selling 120 million kg of tobacco at an average price of $2.35.
Tobacco is Malawi’s major export crop. Currently, the Tobacco Commission is garnering support from various stakeholders to boost production to 200 million kg by 2026 in the process increasing foreign exchange earnings from the crop for the country.
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