Africa-Press – Malawi. Despite the Tobacco Commission (TC) extending the marketing season, more than four million kilogrammes of tobacco remain unsold at Mzuzu Floors, a situation that poses serious risks for both farmers and Malawi’s economy. Sources at Mzuzu Floors confirmed that about four million kg of tobacco are yet to find buyers.
This unsold leaf is worth an estimated $9.84 million (about K17.2 billion) based on this year’s average price of $2.46 per kg, with even more volumes believed to be lying idle in farmers’ homes, unaccounted for in official statistics.
Farmers say they are in crisis. Many had taken loans to finance production, expecting to repay them through sales. Now, with buyers withdrawing and prices falling, they are left in debt and despair. Chitipa-based farmer Hazwell Chikakuda, who leads the Kwacha na Kulya Club, said his group has been stranded since July.
“We sold a small portion of our tobacco, but after paying off part of our K4.4 million loan, buyers canceled contracts. We can’t pay workers, feed our families, or send our children to school,” he lamented. Another farmer from Rumphi, Jai Kanyondo, shared a similar story. “Out of my K3 million loan, I’ve only repaid K2.7 million. Buyers backed out, and I’ve been selling the remaining leaf at throwaway prices—some as low as $2 (about K3,500) per kg,” he said. “We are seeking legal advice because the companies failed to honor contracts. We feel abandoned.”
TC spokesperson Telephorous Chigwenembe admitted that there are still large volumes of unsold tobacco both on the floors and outside formal markets. He said the Commission is engaging with buyers and other stakeholders to find a way forward.
“Some contracting companies have not yet bought the crop. We are assessing the situation to see the exact amount of unsold tobacco and how we can intervene,” he said. According to Tama Farmers Trust chief executive Nixon Lita, this year’s problem lies in an oversupplied market—there is simply more tobacco than buyers need.
He said, “We have an oversupplied market versus demand. Stocks are high and the buying rate is slow, especially at Mzuzu Floors.”
This year, TC data shows that 218.9 million kg of tobacco have already been sold, generating $539.4 million (about K944.66 billion) in foreign exchange, which is more than last year’s total of 133 million kg, which earned $396 million. The increase in output—initially estimated at 174.4 million kg but later adjusted upward due to favorable weather—has now turned into a double-edged sword: a good harvest, but poor market uptake.
The unsold tobacco is more than a farmer’s headache—it is a national economic concern. Tobacco contributes over 50 percent of Malawi’s foreign exchange and about 13 percent of the national GDP. With K17 billion worth of leaf stuck, the country is losing crucial forex inflows that would help stabilize the kwacha, finance imports, and support budgetary needs.
Economists warn that if such trends persist, foreign reserves could fall, worsening import shortages and inflation, while also dampening confidence in the tobacco sector, which is already facing declining global demand and anti-smoking campaigns.
For decades, Malawi has depended heavily on tobacco as its “green gold.” But this crisis shows how fragile that dependence has become. Farmers face volatile prices, contract failures, and limited buyer competition, while the economy suffers from foreign exchange uncertainty.
Experts say it is time for Malawi to diversify its export base and add value locally rather than relying solely on raw tobacco sales. As the TC and government look for solutions, the message is clear: unsold tobacco means unpaid loans, empty pockets, and a weaker economy.
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