Tobacco Earns K22.8 Billion in Two Weeks, but High Rejection Rates Raise Concern for Farmers

Malawi has earned about $12.8 million (around K22.3 billion) from tobacco sales in just the first two weeks of the 2026 marketing season, but farmers are still facing major challenges due to high rejection rates and low satisfaction with prices. According to data from the Tobacco Commission, a total of 5.97 million kilograms of tobacco have been sold so far at an average price of $2.16 per kilogram, generating the early-season revenue. However, behind these figures lies growing frustration among farmers as a large share of their crop is being rejected at auction floors.

At the Mzuzu Auction Floors alone, the rejection rate has reached 69 percent, meaning more than half of the tobacco offered by farmers was turned away. Although this is an improvement compared to 90 percent rejection in Lilongwe when the season opened, the levels are still seen as very high and worrying for growers. Prices have shown some improvement, with buyers like Nyasa Tobacco offering up to $2.80 per kilogram for auction tobacco in Mzuzu.

But despite better pricing, many farmers say the rejection of their tobacco remains the bigger problem, as it directly reduces how much they can sell. The Tobacco Commission has explained that Malawi is currently producing more tobacco than buyers are willing to purchase. The country is expected to produce about 197 million kilograms in 2026, while buyers have only demanded around 170 million kilograms, creating a clear oversupply situation.

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Farmers’ representatives have welcomed slight improvements in prices but remain concerned. Tobacco Farmers Association of Malawi (TAMA) Trust president Abel Kalima-Banda said buyers are now generally respecting agreed minimum prices, but rejection levels are still too high and continue to hurt farmers. Government has also acknowledged the problem.

Minister of Agriculture Roza Mbilizi said global tobacco production has reduced international demand, while some buyers are still selling leftover stock from last year. She admitted that the situation is complex but assured farmers that government will not allow them to sell below production cost. She also said President Peter Mutharika is closely monitoring the situation and has directed that all tobacco on the floors should be bought, though she did not give clear details on how this will be achieved.

The Tobacco Commission board chairperson, Reverend Daniel Gunya, also expressed concern, noting that high rejection rates at the start of the season have become a recurring problem over the past three years. The weak start to the season comes at a difficult time for Malawi’s economy. The country’s import bill has risen to $2.67 billion, widening the trade gap and increasing pressure on foreign exchange.

Tobacco remains the country’s main export earner, bringing in about $540 million last year, accounting for nearly half of export earnings. Despite the early revenue figures looking strong, the real concern remains clear: while Malawi is selling tobacco, a large portion of farmers’ produce is still not finding buyers.

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