Malawi tobacco earnings drop by K15bn


Tobacco Market Malawi

Malawi has recorded a K15 billion decline in tobacco earnings within the first four weeks of the 2026 marketing season, as lower prices and high rejection rates continue to affect the country’s top export crop.

According to figures released by the Tobacco Commission, the country earned US$40.8 million, about K70.7 billion, from the sale of 19.3 million kilogrammes of tobacco between April 20 and May 14, 2026.

The tobacco was sold at an average price of US$2.12 per kilogram during the period under review.

During the same period last year, Malawi realized US$51.8 million, equivalent to about K86.6 billion, from 22.4 million kilogrammes sold at an average price of US$2.32 per kilogramme.

Tobacco Commission spokesperson Telephorus Chigwenembe confirmed the development, saying the market has recorded lower earnings and prices compared to the previous season.

The Commission said contract burley accounted for the largest share of sales, contributing 16.3 million kilogrammes, representing 84.5 percent of the total volume traded during the four weeks.

The report further indicates that auction burley registered a rejection rate of 91.8 percent, while the overall rejection rate for both auction and contract tobacco stood at 6.8 percent.

The Tobacco Commission has projected tobacco production at about 197 million kilogrammes this year against an estimated buyer demand of 170 million kilogrammes, amid concerns that oversupply on the global market could continue affecting prices and market performance.

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