Tobacco Commission to limit 2026/2027 production to prevent oversupply

The Tobacco Commission has announced plans to limit tobacco production in the 2026/2027 farming season to prevent oversupply and ensure output reflects market requirements.Chief Executive Officer Evans Chilumpha disclosed the plan on Wednesday in Lilongwe when the Commission appeared before the Parliamentary Committee on Industry, Trade and Tourism.According to Chilumpha, production limits would prevent the overproduction issues that have affected growers and buyers in recent seasons.“We had tobacco over production in the 2024/2025 season, forcing buying companies to purchase more than their requirements,” Chilumpha told the committee.He said the trade requirement for 2024/2025 was 213 million kilogrammes, but farmers produced 221 million kilogrammes.The 8 million kilogramme surplus led to forward buying, with companies using up volumes they would have purchased this year.Projections for the 2025/2026 season also show another surplus.

Production is estimated at 197 million kilogrammes against trade demand of 170 million kilogrammes, prompting the need for regulatory intervention. This site uses Akismet to reduce spam.Learn how your comment data is processed.