Tobacco earnings hit $143 million

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Tobacco earnings hit $143 million
Tobacco earnings hit $143 million

Africa-Press – Malawi. Revenue from tobacco and volume sold remained lower last week compared to the corresponding period last year, figures show.

Latest figures from the Tobacco Commission for week seven of the 2025 tobacco marketing season show that 58.9 million kilogrammes (kg) of tobacco have been sold, generating $143 million in revenue.

During the corresponding period last year, 64.7 million kg of tobacco were sold, raking in $182 million.

The volume decline— of nearly 6 million kg— translates to a 9 percent drop in tobacco sales by weight, while the revenue decrease of $39 million represents a 21 percent decline in total value.

Average prices have also shown a downward trend, falling from $2.81 per kg in 2024 to $2.43 per kg in the current season.

The 38-cent drop per kg represents a 13.5 percent decrease in unit prices.

The combined effect of reduced volumes and lower prices has significantly impacted the overall market performance, raising concerns about the sector’s contribution to foreign exchange earnings.

In an interview, agriculture policy expert Leonard Chimwaza reiterated that the decline in average prices and reduced earnings was worrisome and not good news to the country and producers.

“Prior to the opening of the floors, there were high expectations on the prices due to the increased number of buyers this year. This year, farmers experienced high costs of production across the value chain. With these prices, tobacco farmers will be demovated and cases of smuggling will increase,” Chimwaza said.

In an earlier interview, TC spokesperson Telephorus Chigwenembe said the earnings would pick up as more tobacco is presented to the market.

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