Malawi has registered a 20 percent decrease in total tobacco production in the 2021/22 agricultural season according to the Tobacco Commission (TC).
The Reserve Bank of Malawi in its April Economic Reviews said the commission estimated 103.0 million kgs from 124.3 million kgs produced during 2020/2021 growing season.
The Reviews says the estimated decrease in tobacco production is on account of the late onset of rains this years as well as destruction of the crop by tropical storms.
Meanwhile, consolidated demand for all tobacco types is at 154.0 million kilograms.
The 2022 tobacco marketing season officially opened on 31st March 2022 with Kanengo Auction Floors only.
As at end April 2022, only Kanengo and Limbe Auction Floors were operational and cumulatively a total of 1.6 million kgs was sold at an average price of US$1.75/kg.
The volume sold was lower by 82.0 percent when compared to 8.9 million kilograms sold in the corresponding month of the 2021 tobacco marketing season, at an average price of US$1.68/kg.
In the period ahead, volumes and prices are expected to improve more especially with improved deliveries at the Auction Floors and also of mature quality.