Six weeks into Malawi’s tobacco marketing season, farmers have earned about K120 billion ($68 million) from tobacco sales. But despite hopes for a stronger season, the latest figures show the industry is still lagging behind last year’s performance. Data from the Tobacco Commission (TC) indicate that growers have sold 32.7 million kilogrammes of tobacco at an average price of $2.09 (about K3 799) per kilogramme since the market opened on April 20.
While the figures may appear impressive at first glance, a comparison with the same period last year paints a different picture. This means that compared to last year, farmers have so far earned 32 percent less revenue, sold 22 percent less tobacco, and received prices that are about 10 percent lower. One area where this year’s market appears to be improving is in the rejection rate.
When sales opened, farmers faced a crisis as buyers rejected between 90 and 100 percent of tobacco presented at some floors, forcing many growers to take their bales back home. However, the situation has improved significantly in recent weeks. Current data show rejection rates have fallen to around 55 percent, although this remains far above last year’s overall rejection rate of 26 percent.
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Farmers attribute the improvement to the intervention of Minister of Agriculture, Irrigation and Water Development Roza Mbilizi, who met tobacco buyers after widespread complaints from growers. Tama Farmers Trust president Abiel Kalima Banda said the high rejection levels have been the biggest factor slowing down sales. “Prices remain very low considering the cost of production.
The situation is even worse on auction floors compared to contract markets,” he said. Based on the figures released so far, the answer is not yet.
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