Tea prices up, revenue falls

Malawi’s tea prices went up averaging $1.89 per kg during the first half of 2013 compared to $1.65 per kg in the first half of 2012,according to a Reserve Bank of Malawi (RBM) report.

The RBM June review further indicates that in the month, total proceeds fell to $0.9 million compared to $1.6 million earned in June last year. And, cumulatively the report indicates, tea at the end of June 2013 stood at $11.0 million, lower than $15.7 million in the previous corresponding period.

“Tea production stood at 2.3 million kgs in June 2013, compared to 1.6 million kgs produced in June 2012. The cumulative volume of tea production from January to June 2013 amounted to 30.3 million kgs compared to 31.9 million kgs produced in a similar period last year.

“Tea auction sales through the Limbe market amounted to 0.5 million kgs during the month under review, against one million kgs auctioned in June 2012,” reads the report in part.

In the June report adds that from January to June 2013, a total of 5.8 million kgs was auctioned, representing a drop of 38.8 percent from 9.5 million kgs auctioned in a corresponding period in 2012.

The central bank has ,however, explained that the decline in volume of auction sales was on account of a backlog of contract sales from last year.

Tea is one of the country’s important foreign exchange earners apart from tobacco and sugar.

The report notes that sugar production dropped to 32.7 million kgs in June compared to 38.6 million kgs the same period last year on account of unfavourable weather conditions.

Cumulatively, the report notes that sugar production from January to June 2013 amounted to 92.2 million kgs compared to 95.2 million kgs during a similar period in 2012 while cumulative volume of sales stood at 115.5 million kgs, slightly lower than 118.8 million kgs sold in a corresponding period in the previous year.

However, the report notes that tobacco, which is Malawi’s major foreign exchange earner, sales through the auction floors amounted to 96.7 million kgs as at end June 2013, significantly higher than 61.7 million kgs sold in a similar period in 2012.

However, tobacco prices were lower averaging $1.92 per kg as at the end of the review month compared to $2.16 per kilogram fetched in a corresponding period in 2012 consequently earning cumulatively $185.4 million compared to $133.1 million earned in a corresponding period last year.