TCC expects high tobacco prices this year

0

The Tobacco Control Commission (TCC) has said it expects this year’s tobacco prices to be higher than last year’s since there is low supply of the leaf.

This year’s tobacco market season will open tomorrow on 11th April starting with Lilongwe Auction floors. Acting chief executive officer David Luka said there were proposals to open the tobacco market as he said they expect to have a better season this year.

Malawi Tobacco

Tobacco prices to go up (File)

Luka further told the local media that Malawi’s green gold looks promising in the fields. He said there is high demand and low supply this year.

“According to our estimates we did two weeks ago, we had established 125 million kilograms in all types of tobacco but the initial trade requirements were 152 million kilograms so there is a shortfall of 27 million kilograms,” Luka explained.

He further said because of that shortfall it means there will be more demand and low supply hence TCC expects a better season than the last year’s. Luka advised farmers to take their tobacco to the market in well-presented manner so that they should have their premium prices.

“For the buyers again it’s a plea that they should pay the prices that the quality demands, so assuming all the factors are equal we expect to have a better season,” he added.

Malawi which is the 7th global supporter of Tobacco leaves, produced over the required leaf last year a development which forced TCC to extend the marketing season until November.

The decline in number of kilograms this year has germinated following the TCC’s decision to introduce quota system for the production of the leaf, as the previous year marketing season was marred by poor prices and poor quality of the gold leaf.

Last year Malawi sold over 194 million Kgs of tobacco at an average price of 1.42/Kg, raking in about US$276 million.

Share.