Tobacco revenue hits $234.37 million

Malawi tobacco revenue hit $234.37 million in week 15, approximately 78 percent of the 2013 government target of $300 million, indicates data from Auction Holdings Limited (AHL).

Data published in the press indicates that up to week ending June 21, the country sold over 114.2 million kg which includes 99.2 million kg from burley, 12.5 million kg from flue cured tobacco and 2.5 million kg from dark fired tobacco.

Specifically, during the period, the country raked in $190.84 million from burley, $38.22 million from flue cured, and $5.31 million from dark fired.

In week 15, the country raked in $23.76 million from tobacco, specifically $18.61 million from burley, $4.51 million from flue cured, and $0.64 million from dark fired.

The AHL data indicates that in week 15, burley prices rose by $0.07 to $2.18 per kg, flue cured by $0.03 to $3.41, while dark fired declined by $0.17 to $1.97 per kg from previous week.

Analysts have so far attributed the bolstering of the official foreign exchange reserves which hit an equivalent of 2.4months by June 20 to the current good tobacco marketing season.

Malawi is this year expected to sell 156 million kg and realise about $300 million from the leaf which accounts for 13 percent of gross domestic product.