Minister of Agriculture Roza Mbilizi is set to officially open the 2026 tobacco marketing season at the Auction Holdings Limited (AHL) Lilongwe Floors, marking the start of one of Malawi’s most critical economic periods.
Tobacco sales have already commenced at the Kanengo Auction Floors in Lilongwe, where the highest price recorded on the first day reached $2.90 per kilogram.
However, despite this peak price, a significant number of bales have been labeled “No Sale,” indicating a failure between buyers and sellers to agree on pricing.
Reacting to the development, Nixon Soko, a farmer from Kabudula in Lilongwe, expressed concern over the slow start to the market.
“It is painful because when a bale is labelled ‘No Sale’, it means a farmer would have to bring it another day. For that day, its sale has flopped,” he said.
Minister Roza Mbilizi has already inspected the auction floors, with the official opening ceremony for the 2025–2026 tobacco selling season currently underway, where she is the guest of honour.
According to projections, Malawi is expected to produce about 197 million kilogrammes of tobacco against a global demand of 170 million kilogrammes, suggesting a potential oversupply on the international market.
Despite this, buying companies have indicated readiness to purchase the crop.
The Tobacco Commission has since advised farmers to prioritize quality to secure better prices in the face of increased supply.
While many growers have expressed satisfaction with the opening prices, concerns persist over rising production and labour costs. The Commission has assured stakeholders that it is closely monitoring compliance with contracts while promoting sustainable production practices in line with the Tobacco Industry Act.
Tobacco remains Malawi’s leading foreign exchange earner, supporting thousands of smallholder farmers and continuing to play a vital role in the country’s economy.
