By Jones Gadama
Malawi is earning less from tobacco despite selling more leaf this year, with weak prices wiping nearly $50 million off export receipts by week eight of the marketing season.
According to the Tobacco Commission’s latest market update, farmers had sold 62.1 million kg of tobacco worth $128.8 million by the eighth week.
That compares to 58.3 million kg sold for $178.4 million in the same period last year.
The average price fell from $2.45 per kg in 2025 to $2.07 per kg in 2026, cutting revenue even as volumes rose.
Quality concerns persist, especially at auction floors. The overall rejection rate improved to 5.5 percent, but auction tobacco alone was rejected at 64 percent, remaining a major headache for growers.
TC spokesperson Telephorus Chigwenembe said the season was progressing and most leaf brought to market was eventually sold. He noted that rejections at auction had eased recently after interventions by the Commission.
Tama Farmers Trust President Abel Kalima Banda welcomed steps taken by the Ministry of Agriculture and TC to improve grades.
He said farmers want rejections cut to 3 percent or lower so more tobacco gets sold and incomes are protected.
Economist Velli Nyirongo warned the revenue slump could deepen Malawi’s foreign exchange squeeze.
He said the $49.6 million loss in earnings may add pressure on the kwacha and slow overall growth, given tobacco’s role as the country’s main forex earner.
With prices still soft, stakeholders are calling for continued focus on quality and market reforms to boost farmer incomes.
