Tobacco surplus raises pricing fears as Mbilizi warns buyers

By Edwin Mauluka

Minister of Agriculture Roza Mbilizi has cautioned tobacco buyers against exploiting farmers through unfair pricing, warning that this year’s surplus could put growers at a disadvantage.

Mbilizi made the remarks during the official opening of the 2026 tobacco marketing season in Lilongwe, held under the theme “Driving national growth through a market-responsive tobacco industry.”

The market opened with a highest price of $2.50, down from last year’s $3.50, while the lowest price was recorded at $1.90.

She urged buyers to support the market by purchasing all tobacco produced and warned against taking advantage of the current oversupply.

Speaking to reporters after touring both auction and contract floors, Mbilizi said she observed widespread rejection of bales at the auction floors, with nearly 99 percent turned away and farmers being offered low prices.

“I had to engage the buyers and the Tobacco Commission to ensure adherence to minimum prices. When we say minimum, it must be respected. Tobacco should be bought above the set floor price, depending on grade. Since this is the first day, we expect improvement,” she said.

Mbilizi emphasized that buyers must prioritise farmers’ welfare and comply with minimum price guidelines, stressing that no purchases should fall below the set thresholds.

She assured farmers that the Ministry of Agriculture will closely monitor pricing trends, saying the government wants fair outcomes for growers.

The minister also underscored the importance of the tobacco season to Malawi’s economy, describing farmers as “heroes” whose contribution remains central to foreign exchange earnings, even as the country pursues diversification.

Farmers under contract arrangements reported fewer concerns, with buyers offering relatively better prices.

This season, Malawi has produced about 197 million kilograms of tobacco against an estimated demand of 170 million kilograms, raising concerns about oversupply.

Mbilizi has since called on the Tobacco Commission to better align production with demand in future seasons. She also urged investment in value addition, rather than exporting raw tobacco.

Additionally, she called on farmers to protect the environment, avoid child and forced labour to meet international standards, and desist from illegal cross-border trade, which she said threatens the economy.

TAMA Farmers Trust president Abel Kalima Banda expressed concern over the high rejection rate, saying it leaves farmers with few alternatives.

“We need to engage and find solutions. If buyers continue rejecting at that rate, growers are in trouble because the auction floors are their primary market,” he said.

Tobacco Commission vice board chairperson Abbie Mathanga said the regulator is stepping up efforts to curb smuggling into neighbouring countries.

“We are engaging counterparts in countries like Zambia and will soon establish a joint committee at the Chipata border to prevent tobacco from being smuggled into Zambia or Mozambique,” she said.

On pricing, Mathanga said the Commission will enforce minimum price compliance.

“We are not here to watch things go wrong. Our role is to ensure buyers and growers meet through dialogue so that the season starts well and benefits the country,” she said.

Malawi has eight buying companies participating in this year’s tobacco marketing season.

Also Read: Malawi Mega Farms: Central Region gets 78% of inputs as loan defaults rise

Related: Green gold, missed opportunity: What Malawi must learn from global cannabis giants

Author

Tags:

Related Article

0 Comments

Leave a Comment

Categories