With two weeks to the close of the grower licensing period for the 2024/2025 farming season, licensed tobacco volumes are showing a positive trajectory, keeping alive confidence in the country’s commitment to satisfying market demand.
As of last week, licensed tobacco volumes had hit 223 million kilogrammes, a 24.7% increase from 178.9 million kilogrammes licensed by the same time during the 2023/2024 farming season.
In the 2023/2024 farming and selling season, the Tobacco Commission licensed 265.9 million kilogrammes. Farmers, however, produced 133 million kilogrammes against the trade demand of 190 million.
The trade demand for the 2024/2025 farming season is yet to be known but it is not expected to depart from last season’s by a wide margin.
Tobacco Commission spokesperson, Telephorus Chigwenembe attributed growing interest in the production of the crop this year to prices offered during the last selling season.
“Buying companies were generous with price offers and that has motivated a lot of people to consider growing tobacco this year. This is good as it gives us hope that we can satisfy global demand for our tobacco,” said Chigwenembe.
In the past two years, the Tobacco Commission has committed to facilitating increased annual production to 200 million kilogrammes by 2028.
The Commission and the Malawi Government have, among others, been engaged in efforts to court new buying companies to increase competition which is expected to trigger attractive prices, key in motivating production.
Is there an open market system ie auction market for tobacco in Malawi currently?