RBM optimistic of improved tobacco earnings
Reserve Bank of Malawi (RBM) has said despite tobacco prices not being impressive to date, foreign exchange to be realised from the crop will not be far from their projection.
Figures from Tobacco Control Commission (TCC) show that at the end of week six, 28.3 million kilogrammes (kg) of tobacco has raked in $38 million (K24 billion). This compares to $60 million (K43 billion) realised during the same period last year, representing a 36 percent drop.
This year’s marketing season has been riddled with high rejection rate and poor prices.
But despite the situation not being impressive, RBM spokesperson Mbane Ngwira has chosen to remain optimistic, hoping that prices will improve as the sales progress.
He said: “We normally make projections as to how much forex tobacco will bring before the market starts and we are optimistic that things will improve as the marketing season progresses. The dollars expected to be realised will not be far from what we projected.
“Even as I am speaking, the dollars that have been realised are not very far from what we anticipated to get.”
He could, however, not give figures in terms of their projection.
AHL Group corporate affairs manager Mark Ndipita said most tobacco growers have now given up demanding better prices. n
