Thousands of tobacco farmers across Malawi are set to receive money withheld from their tobacco sales after the Tobacco Commission pledged to complete payments by Friday, August 28, 2026.
The Commission announced on Monday that all proceeds withheld from tobacco sold before August 14 will be paid to affected growers by the deadline.
The announcement was made in a statement signed by the Commission’s Public Relations Officer, Telephorus Chigwenembe.
The development is expected to bring relief to farmers who have waited weeks for payment after exceeding their allocated production quotas, resulting in part of their earnings being withheld pending compliance checks.
Chigwenembe said the Commission withholds proceeds from tobacco sold above a grower’s allocated quota to ensure compliance with licensing requirements governing excess production.
He explained that the measure is intended to regulate production and prevent market flooding, although it has contributed to concerns among farmers over delayed payments.
“The Commission has put arrangements in place to facilitate payment of the withheld proceeds for affected growers by next week,” said Chigwenembe.
According to the Commission, the payment process has been streamlined to prevent further delays, with funds expected to be deposited directly into the accounts of affected growers.
The Tobacco Commission, which operates under the slogan “OUR TOBACCO, OUR ECONOMY,” has reaffirmed its commitment to supporting growers and promoting transparency throughout the tobacco marketing season.
Chigwenembe said the Commission is also working closely with tobacco buyers and financial institutions to ensure the smooth disbursement of the withheld proceeds.
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