TOBACCO REVENUE FALLS BY US$65 MILLION AS AVERAGE PRICE DROPS TO $2.07/KG

Malawi’s tobacco industry has recorded a significant decline in earnings during the first nine weeks of the 2026 marketing season, with revenue falling by more than US$65 million compared to the same period last year, according to the latest report by the Tobacco Commission (TCC).

The 9-week market performance report, covering the period from April 20 to June 19, 2026, shows that Malawi sold 71,831,086 kilograms of tobacco valued at US$149,045,854.74.

During the corresponding period in 2025, the country sold 86,501,616 kilograms worth US$214,154,260.12.

The figures indicate a decline of 14.67 million kilograms in sales volume and a revenue loss of US$65,108,405.38.

Average prices have also weakened, falling from US$2.48 per kilogram last year to US$2.07 per kilogram this season.

Despite the drop in earnings, the Tobacco Commission says the market has shown signs of stability over the past four weeks, with consistent tobacco uptake recorded across auction floors.

The improvement follows a difficult start to the season when rejection rates for auction tobacco exceeded 90 percent, leaving many farmers unable to sell their produce.

According to the report, rejection rates began to ease from the seventh week of trading, falling to between 60 and 62 percent. The reduction has enabled more growers to successfully market their tobacco.

By the ninth week, overall tobacco uptake — combining both auction and contract sales — had reached 96 percent. However, auction sales accounted for only 39.4 percent of total uptake, highlighting the continued dominance of contract buyers in the market.

While acknowledging the recent improvement in uptake, the Tobacco Commission noted that overall market performance remains below that recorded during the same period in 2025, both in terms of volumes sold and revenue generated.

As Malawi’s leading foreign exchange earner, tobacco continues to play a critical role in the country’s economy.

The Commission has urged farmers to focus on producing high-quality leaf to reduce rejection rates and improve returns as the marketing season progresses.

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By Martha Chikoti

Malawi’s tobacco industry has recorded a significant decline in earnings during the first nine weeks of the 2026 marketing season, with revenue falling by more than US$65 million compared to the same period last year, according to the latest report by the Tobacco Commission (TCC).

The 9-week market performance report, covering the period from April 20 to June 19, 2026, shows that Malawi sold 71,831,086 kilograms of tobacco valued at US$149,045,854.74.

During the corresponding period in 2025, the country sold 86,501,616 kilograms worth US$214,154,260.12.

The figures indicate a decline of 14.67 million kilograms in sales volume and a revenue loss of US$65,108,405.38.

Average prices have also weakened, falling from US$2.48 per kilogram last year to US$2.07 per kilogram this season.

Despite the drop in earnings, the Tobacco Commission says the market has shown signs of stability over the past four weeks, with consistent tobacco uptake recorded across auction floors.

The improvement follows a difficult start to the season when rejection rates for auction tobacco exceeded 90 percent, leaving many farmers unable to sell their produce.

According to the report, rejection rates began to ease from the seventh week of trading, falling to between 60 and 62 percent. The reduction has enabled more growers to successfully market their tobacco.

By the ninth week, overall tobacco uptake — combining both auction and contract sales — had reached 96 percent. However, auction sales accounted for only 39.4 percent of total uptake, highlighting the continued dominance of contract buyers in the market.

While acknowledging the recent improvement in uptake, the Tobacco Commission noted that overall market performance remains below that recorded during the same period in 2025, both in terms of volumes sold and revenue generated.

As Malawi’s leading foreign exchange earner, tobacco continues to play a critical role in the country’s economy.

The Commission has urged farmers to focus on producing high-quality leaf to reduce rejection rates and improve returns as the marketing season progresses.

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