Africa-Press – Malawi. Malawi’s tobacco market has opened on a sour and unsettling note, with buyers offering as little as $2 per kilogram, triggering outrage among farmers and a sharp public rebuke from Agriculture Minister Roza Mbilizi.
At the opening in Kanengo Auction Floors, what should have been a moment of optimism quickly turned into frustration, as growers—already burdened by rising production costs—watched prices fall far below expectations. For many, the figures signal not just disappointment, but potential losses.
Mbilizi did not mince words. She condemned the low prices as unacceptable and warned buyers against exploiting farmers, stressing that the tobacco industry must deliver real value to those who produce the crop. She also raised concern over high rejection rates recorded on the first day—another blow that could further shrink farmers’ earnings.
The stakes stretch beyond the auction floors. Tobacco remains Malawi’s top foreign exchange earner, and hopes are high that the season will ease the country’s ongoing fuel shortages by bringing in much-needed dollars. But with prices starting low, those expectations are already under threat.
Eight buying companies, including Alliance One Malawi, Limbe Leaf Tobacco Company, Premium Tobacco Limited and African Tobacco Services, are participating this season. Yet despite their presence, competition for the crop appears weak—tilting power firmly in favour of buyers.
The Tobacco Commission has urged farmers to improve grading standards, arguing that quality remains the strongest bargaining tool in a difficult market. Spokesperson Telephorus Chigwenembe said well-prepared, properly graded tobacco is more likely to attract better prices and international demand.
But even that may not be enough to offset global pressures. According to the Commission, world tobacco production has exceeded demand, leaving buyers with multiple sourcing options and reducing Malawi’s leverage. In such a market, even good quality tobacco is no guarantee of fair pricing.
On the ground, farmers are already feeling the squeeze. Rabson Joseph, a grower from Dowa, said while improving grading is necessary, the current prices risk undermining the entire season. With input costs having risen sharply, many farmers say selling at $2 per kilogram could push them into losses.
What is unfolding is a familiar but dangerous pattern: high expectations at the start of the season, followed by low prices, high rejections and shrinking incomes. Unless prices improve quickly, the opening day may set the tone for a market that once again leaves farmers carrying the heaviest burden.
For now, the message from the floors is clear—Malawi’s tobacco is selling, but at a price many can hardly afford to accept.
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