$18M OF TOBACCO SOLD

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Tobacco is Malawi's cash crop

THE TOBACCO selling season in Malawi has started on a promising note after realising $17, 979,266.53 (about K13 billion) in the first two weeks of trading, a report by official seller, AHL Group and regulator, Tobacco Control Commission, TCC, has revealed.

According to the report, as on Friday almost 12, 620,569 kilograms of tobacco were sold at an average price of $1.42 per kilogram realizing $18 million while last year 3.8 million kilograms were sold at an average price of $1.61 per kilogram with proceeds amounting $6.1 million.

The report, however, has indicated that despite weather challenges experienced during production of tobacco in the 2017-2018 season, the quality of tobacco presented on the market has so far proven to be good.

Tobacco which is being grown and sold based on the contract farming, has been sold in high volumes in the past two weeks, a development which gives hope to growers that they will earn a lot from selling the green gold.

Corporate Affairs Manager for AHL Group, Mark Ndipita, told The Express that the country has earned about 198 percent returns increase in the first two weeks despite having a low average price than last year.

Ndipita suggested that the development is a clear indication that this year the market is performing better although the average price in the first two weeks of sales is a bit lower than last year.

Currently only the two auction floors of Kanengo in the capital Lilongwe and Limbe in the commercial city, Blantyre are operating in the central and southern region respectively.

Growers from the northern region will start selling at Mzuzu Auction Floors on 30 April.

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