Malawi’s 2018 tobacco market closed; fetches US$336 million

LILONGWE-(MaraviPost)-The Tobacco Control Commission (TCC) says this year’s the green gold marketing season has been a success with the country realizing enough forex compared to 2017.

The commission’s final crop estimates show the tobacco increase in volume by 19% increase over 2nd round to the total estimate of 176.5 million Kg against buyers demand of 171 kgs.

TCC says this marketing season has more volume of tobacco when compared to 2017 which was under-produced by 45%

Therefore by close of marketing season with Mzuzu flours on Friday, the country has realised about US$336 million against US$212 million of 2017.

The commission therefore disclosed that buyers maintain the requirement of 171.3 million kg of tobacco for 2018/2019 growing season.

Addressing Media Network on Tobacco (MNT) on Wednesday, in the capital Lilongwe, TCC Chief Executive Officer, Kayisi Sadala expressed gratitude over this year’s marketing season saying it did not much disruptions.

Sadala attributed market successes to collaborative and collective actions by the Industry spearheaded by the Commission.

Despite good marketing season, he said there were a number of challenges including influx of tobacco from illegal cross border trade, skewed industry estimates and compromise the plan for the selling season.

“There was disagreements between some farmers and tobacco buying companies bordering on contractual agreements and slowed down purchase towards the end of the market due to inadequate storage facilities. But these challenges were managed to be sorted out before getting out of hands.

“The marketing season is expected to be closed by end of August that specific dates for the respective selling floors to be communicated in due course. All in all we are having a very good marketing season ever before,” excited Sadala.

On behalf of MNT President, Arnold Mnelemba lauded the commission for good relationship demonstrated with the media.

Mnelemba  however asked TCC to initiate more trainings that empowers the media positive reporting on tobacco.

Tobacco remains the country’s forex earner towards the Gross Domestic Products (GDP) towards national financial year plan.

However, the country’s final consolidated figures for 2017 tobacco earnings pegged at US$212 million

This is the summing gross collection statistics released by regulatory body, Tobacco Control Commission (TCC) saying the earnings surpass last year’s by 23 percent.

In 2016, a total of 194 million kilograms of tobacco was sold at an average of US$1.42 per kg in which the country realized US$275 million.

This was a drop from US$362 million of 168 million kg of tobacco sold in 2015 whilst this year 107 million kilograms went through the auction. This represents a 45 percent increase in terms of volumes sold.

According TCC the average price for this year was US$1.99 which was better as compared to last year’s US$1.41 per kilogram.

The commission said from the US$212 million, flue cured tobacco contributed US$61 million, 19 percent up against last year’s US$45 million.

 

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