Malawi has earned $70.7 million (about K52 billion) from 38 million kilogrammes (kg) sale of tobacco, which is 34 percent up from the $52.9 million (about K44 billion)the country earned last year during the same period, according to AHL Group tobacco market update.
The average tobacco price has also moved up the ladder by 46 cents (about K335) to $1.84 (about K1 300) from $1.38 (about K1 000) same period during the previous marketing season. This means that prices are better than last marketing season.
In an interview Tobacco Control Commission (TCC) acting chief executive officer David Luka said 75 percent of the tobacco being sold is on contract farming while 25 percent is sold under the auction market.
“This is a straight forward issue because the anticipated volume is lower than what is required and this underscores our findings that they were true” he said.
Luka said this year’s market has seen a reduction in rejection rates at 27 percent as compared to last marketing season around 43 percent during the same period.
Tobacco Association of Malawi (Tama) president Abel Kalima Banda said the prices are better this year because production was controlled. n