Tuesday, April 20, 2021
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

Tobacco revenue down 18%, figures show

by Steve Chilundu
24/08/2020
in Business News
3 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

Malawi has to date earned $131 million (about K96 billion) from tobacco in week 18 of sales, figures from Tobacco Commission (TC) show.

This is an 18 percent drop from $160 million (about K118 billion) realised during the same period last year.

RelatedHeadlines

Policy to focus on taming prices—RBM

MSE registers first trade on debt market

Tobacco sales set to start, growers want good prices

Despite the average price at $1.57 (about K1 161) per kilogramme (kg) being five percent better than last year at $1.47 (about K1 087) per kg, the drop in earnings is largely because of reduced volumes.

In week 18, about 93 million kg of tobacco was sold compared to 119 million kg sold during the same period last year, representing a 22 percent drop.

So far, figures show that about 20 million kg out of this year’s 113.3 million kg is yet to be sold.

tobacco 1 | The Nation Online
Tobacco sales have performed badly this year

In an interview yesterday, TC chief executive officer (CEO) Kayisi Sadala expressed concern over the subdued earnings and volumes despite higher trade requirements.

He said: “The commission actually licensed 10 percent more than the trade requirements for contingency purposes.

“The development is a big concern to the industry and the national economy as tobacco remains our main source of export earnings. In actual fact, most buyers won’t meet their trade requirements.”

Sadala said the regulator has started registration for the forthcoming growing season and has encouraged growers to register.

On his part, Tama Farmers Trust CEO Nixon Lita said production this year is lower than expected partly due to weather conditions, despite estimates pointing to an output of 156 million kg.

“This will mean low income to farmers as the figures are showing production will be below potential,” he said.

Betchani Tchereni, associate professor of economics at The Polytechnic—a constituent college of the University of Malawi—said this means foreign exchange will be a challenge and will likely affect importation of other essential commodities.

He said: “For the medium to long-term, we need to diversify this economy more.

“We need to begin to look at other areas of the economy such as mining, energy and industry.  In such a way, the risks associated with one area may be mitigated.”

Results of the third and final round tobacco crop estimates done in July show that tobacco output has gone down by 26.7 percent to 113.3 million, attributed to poor weather pattern.

This is a drop from 161 million kg buyers’ demand.

Last season, Malawi earned $237 million (about K175 billion) from tobacco, a 29.8 percent drop from the previous year’s $337.5 million (about K249 billion) realised in 2018.

Tobacco, touted as the country’s main foreign exchange earner, contributes about 13 percent to the country’s gross domestic product.

Avatar
Steve Chilundu
Previous Post

Rab Group CEO gives govt hints on job creation

Next Post

Namadingo to raise funds for guitarist

Related Posts

graph 2 | The Nation Online
Business News

Policy to focus on taming prices—RBM

April 20, 2021
MSE TRADING | The Nation Online
Business News

MSE registers first trade on debt market

April 19, 2021
Tobacco sales are expected to start Tuesday
Business News

Tobacco sales set to start, growers want good prices

April 19, 2021
Next Post
Best male act of 2020: Namadingo

Namadingo to raise funds for guitarist

Opinions and Columns

Big Man Wamkulu

Hot babe wants to trap me, should I ran?

April 18, 2021
Political Uncensored

Mighty mess!

April 18, 2021
My Thought

Chakwera’s indecisiveness will be his downfall

April 18, 2021
People’s Tribunal

Cut the crap, act on abuse forthwith

April 17, 2021
https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf

Trending Stories

  • Minister of Labour Ken Kandodo

    Ministry defends ‘borrowing’ of Covid-19 funds

    0 shares
    Share 0 Tweet 0
  • Chakwera bites

    0 shares
    Share 0 Tweet 0
  • Chilima in public projects inspection

    0 shares
    Share 0 Tweet 0
  • OPC frustrates roads projects

    0 shares
    Share 0 Tweet 0
  • ‘Tobacco is dying crop’

    0 shares
    Share 0 Tweet 0
  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2021 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.