Tobacco farmers producing too much tobacco: affecting leaf price

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The market principle of demand and supply has come to haunt the tobacco market in Malawi, Malawi24 has been informed.

The Tobacco Association of Malawi (TAMA) says the availability of more tobacco on the market has affected prices of the cash crop in the country.

Chief Executive Officer for TAMA Graham Kunimba said due to the high supply of tobacco on the market, buyers are taking advantage by offering prices that are not favourable to farmers.

Malawi Tobacco

Tobacco farmers producing too much.

Kunimba disclosed that the tobacco sold on auction is pegging at 92 cents per kilogram while tobacco being sold on contract is going at $1.45, which he said is not a good development.

“The overall supply of tobacco on the market is higher than demand and this is prompting buyers to have a selective type of buying,” said Kunimba.

According to the TAMA boss, this year’s overall average of prices is 12 percent lower than last year’s.

He further said that the variation in prices is not good for the sustainability of the tobacco business in the country.

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