Business and Finance

Tobacco output down 12 percent

Tobacco output down 12 percent

Tobacco output for the 2023-24 season has fallen 12 percent shy of the expected 140 million kilogrammes (kg), with just about 123 million kg sold.

This is coming at a time the Tobacco Commission (TC) has announced August 2 as the closing date for the season.

Chinkhoma Auction Floors closed last week while Limbe and Lilongwe floors close this week.

The volume of tobacco sold is 67 million kg shy of the 190 million kg international market demand for this year.

TC Public Relations Officer Telephorus Chigwenembwe said the trade demand, at 190 million kg, is an indication that Malawi tobacco will always have a market.

“There is a ready market for our tobacco and it is important for us to come forward to produce more tobacco.

“We are calling on even those that have not yet started growing tobacco to join the industry so that we can produce enough to satisfy the global demand,” Chigwenembe said.

In a separate interview, Tobacco Association of Malawi Trust President Abiel Kalima Banda said production was mainly affected by weather.

“The initial estimates were derived from nursery projections but most tobacco producing areas faced a dry spell because we received rains in November, farmers planted, then it went away until early January, which affected the crop, hence the low volumes.

“However, we should expect increased volumes in the next growing season because we have advised farmers not to only rely on rainfall but use other means such as irrigation to support the crop while in nursery,” Kalima Banda said.

The country has realised $367 million from the sale of 123 million kg of all types of tobacco at an average price of $2.95.

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.