The 2025 tobacco marketing season started in Lilongwe Wednesday with the green gold attracting a maximum price of $3.20 per kilogramme (kg), up from an opening day high of $3 per kg recorded last year.
But there were pockets of discontentment among growers as the lowest price offered by buyers hovered around $1.20 per kg.
Unlike last year, when no tobacco was sold below $2 per kg on the opening day, yesterday the market saw many bales attracting prices of between $1.20 and $2.
One of the growers, Memory Chikuwi from Mponela in Dowa District, said the growers had anticipated that the cost of production would be reflected in the price offered by buyers.
“But what is shocking is that some tobacco is attracting as low as one dollar and some cents. We were buying expensive fertiliser at K175,000 per bag in Mponela. We were feeding tenants expensive maize, which we were buying at K100,000 per bag.
“But the price we are getting here is not convincing. The question is, will the earnings help us to grow tobacco again next year?” Chikuwi said.
But briefing reporters after touring the market, President Lazarus Chakwera said he was encouraged by what he saw at the market.
According to Chakwera, after appreciating both the best leaf and low-quality leaf on the market, he was convinced that the market had started on a good note.
“I have seen both the best and the worst, in terms of what comes first from the bottom leaf, which usually is not [the] best. But what is encouraging is, given the minimum prices suggested, they have gone up; sometimes even more than 55 cents above the minimum.
“What I want is a win-win situation where farmers rejoice and buyers are happy, together as a nation we work so as to make sure that this industry does serve Malawi and its vision,” Chakwera said.
Nyasa Tobacco Company General Manager Jack Basikolo described the quality of the leaf on the first day of the market as a mixed bag.
According to Basikolo, while there were some pockets of quality leaf, other leaves offered were of inferior quality.
He observed that just like last year, Nyasa Tobacco Company remained committed to offering competitive prices for quality tobacco.
Basikolo urged growers to ensure that they avoid bringing mixed tobacco by paying more attention to grading the green gold and ensuring that there were no non-tobacco-related materials.
On his part, East Bridge Tobacco Company Chief Executive Officer Malumbo Mwasinga, whose company is buying tobacco on the Malawi market for the first time, said they were ready to compete for quality tobacco on the market and reward growers handsomely for their toil.
Tobacco Commission (TC) Board Chairperson Godfrey Chapola said Malawi would this year produce 170 million kg, up from 133 million kg last year.
He said international buyers were looking for over 200 million kg of Malawi tobacco this year.
Chapola then urged buyers to offer good prices for the leaf this year, just like last year.
Agriculture Minister Sam Kawale has, meanwhile, hailed tobacco growers and tobacco buyers for their contribution towards the development of Malawi.
According to Kawale, the buyers are a listening lot as they have always listened to pleas from the authorities for better prices.
Kawale said most of the tobacco which had been bought at the lowest price of $1.20 could have otherwise been sent back or sold at $1 but because the buyers are a listening lot, they had offered $1.20.
He expressed hope that tobacco growers would smile at the auction floors because of better prices.
Speaking when he addressed the crowd that gathered outside the auction floors, Chakwera said the opening of the tobacco marketing season was an important day for all Malawians.
According to Chakwera, on such a day, all Malawians should have been united to protect the tobacco grower.
He said it was unfortunate that some Malawians were not concerned about the day, forgetting that what would transpire on this day would affect their lives for the rest of the year.
The Malawi leader said if there was a person who was bringing forex into the country, then it was the tobacco grower.
He said the tobacco forex was crucial for the importation of fertiliser, medicines, fuel and the various businesses that Malawians are doing via the internet.
Chinkhoma Auction Floors in Kasungu is expected to open tomorrow, followed by Limbe Auction Floors on April 14 and Mzuzu Auction Floors on April 28.
0 Comments