There is hope among farmers for a possible relief on the country’s forex situation as the 2025 tobacco selling season opens on Wednesday.
Touted as Malawi’s green gold, the leaf is important to the country’s economy as it remains its top export crop.
While earnings from tobacco are, traditionally, almost equal to the country’s one month worth of imports, the revenue remains timely as Malawi grapples with an acute forex shortage.
At the onset of the tobacco selling season, the local unit, the Kwacha—which has remained volatile for the greater part of recent months—is expected to gain some footing.
Tobacco farmers are also upbeat on prospects of a better season, expecting higher prices from the leaf.
The optimism is premised on elevated demand for the leaf, seen at 213 million kilogrammes (kg), about 22 percent higher than the projected market supply of 174 million kg this year.
Tobacco Association of Malawi (Tama) Farmers Trust Chief Executive Officer Nixon Lita said farmers were ready for the market.
“Deliveries have already started but farm activities are still on-going, mainly reaping and grading. Different areas received rainfall at different times, which has led to varied stages of field work,” Lita said.
“With the increased costs of production, the expectation is that minimum prices per grade will also rise,” Lita added.
Meanwhile, the authorities have warned farmers against nesting—an illegal practice involving the concealment of foreign objects within tobacco bales to mislead buyers on quality or quantity.
Lita said the industry had ramped up sensitisation campaigns to discourage such practices and raise awareness on penalties under the Tobacco Industry Act.
“In February, Tama held a series of annual grower meetings across the country to address key issues, including [that of] nesting,” he said.
The season will begin with the opening of the Lilongwe Auction Floors, followed by Chinkhoma Floors on Friday, April 11; Limbe Floors on Monday, April 14; and Mzuzu Floors on Monday, April 28.
A total of 11 tobacco buying companies are expected to participate in the 2024-25 selling season.
Tobacco Commission spokesperson Telephorus Chigwenembe said preparations were well underway, with tobacco already being offloaded at the selling floors in readiness for the market.
“Our staff is ready and all relevant systems are in place and running. We are set to kick-start the selling season,” Chigwenembe said.
He also said the commission was working closely with law enforcement agencies and local communities to curb tobacco smuggling during the season.
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