The AHL Group says the ongoing tobacco market’s future looks promising although high rejection rates are weighing down on the market.
Speaking during a press briefing on Friday, AHL Tobacco Sales general manager Graham Kunimba said there has been good price offering and adherence to coronavirus (Covid-19) measures despite the market registering high rejection rates and low volumes.
He said: “As you are aware, the Tobacco Commission [TC] has released a statement highlighting concerns on mixing of different tobacco grades. This has contributed to the 37.7 percent rejection rate so far.
“In order to catch up with volumes, the floors will be opening even on Saturdays since the staff are working in shifts to control congestion in the floors,” Kunimba said.
Minister of Agriculture and Food Security Francis Kasaila opened the 2020 Tobacco Market Season on April 20 2020 with Lilongwe and Chinkhoma floors being operational last week while Limbe Market is expected to open today and the Mzuzu Market is expected to open next Monday.
Meanwhile, the country has realised $2.8 million (about K2 billion) through the Lilongwe and Chinkhoma markets from the sale of 1.8 million kilogrammes (kg). The highest price on the week on contract market was $2.50 (about K1 900) per kg while on auction market it was $1.80 (about K1 330) per kg while the average price was $1.55 (about K1 150) per kg