Tobacco Sales Up, Prices Down: Malawi Earns $15.3 Million as Quality Concerns Persist

Malawi’s 2025 tobacco marketing season has opened with mixed signals, showing a promising rise in sales volume but a notable dip in average prices, according to the latest figures from AHL Tobacco Sales Limited.

As of April 17, 2025, the country had sold 6.7 million kilogrammes (kg) of tobacco, raking in over $15.3 million at an average price of $2.28 per kg. This marks a 16.6 percent increase in volume from the 5.75 million kg sold during the same period in 2024, and a modest 3.4 percent increase in total earnings, up from $14.8 million last year.

However, the average price has dropped by 11.3 percent compared to the $2.57/kg recorded in the first week of the 2024 season, raising concerns about quality and consistency on the auction floors.

Experts say the drop in price stems largely from issues of poor grading and product manipulation—a persistent challenge for Malawi’s “green gold.”

Nixon Lita, CEO of the Tobacco Association of Malawi (TAMA) Trust, acknowledged the setback, revealing that some farmers are still cheating by mixing trash or non-tobacco materials into their bales.

“This shows some growers are not heeding advice despite strict penalties in the new law. But we are hopeful. Prices tend to rise as higher-grade leaves begin to dominate the market,” Lita said.

Lita added that the outlook remains positive, with projections suggesting a higher overall crop tonnage in 2025 compared to last year. “We expect better quality and improved compliance as the season progresses, which should stabilize and possibly boost prices,” he said.

Minister of Agriculture Sam Kawale echoed the call for quality, urging farmers to embrace proper grading and uphold Malawi’s global tobacco reputation.

“The future of our tobacco sector lies in quality and consistency. Well-graded tobacco fetches premium prices. The government is committed to fair pricing and empowering farmers through better infrastructure and access to global markets,” Kawale said.

Tobacco remains Malawi’s top export earner, contributing significantly to foreign exchange reserves. Last year, the country earned $397 million after selling 133.37 million kg at an average price of $2.98 per kg.

Despite global anti-smoking pressures and domestic production hurdles, Malawi’s industry still holds promise—if farmers, buyers, and the government can align efforts around quality, transparency, and sustainable practices.

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