LILONGWE-(MaraviPost)-The Tobacco Control Commission (TCC) says this year’s the green gold marketing season is expected to close by end of August with much hope of 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 about 164, 317,002 kgs fetched US$285.2 million for 2018’s 17 weeks of selling when compared 0n the same period in 2017 that sourced US$210 million for 105,247,828 kgs.

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.

MNT President Alfred Chauwa however asked the commission to review some taxes levies saying were punishing already struggled farmers.

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 US275 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.

Burley tobacco fetched US$144 million from 81 million kilograms as compared to last year’s earnings of US$226 million from a total volume of 175 million kilogram.


3rd Round Estimates for 2017/18

TOBACCO TYPE 2nd  Round 3rd Round % change

(3rd vs 2nd )

2018 Demand
Burley 117,600,000 146,000,000 24.1       135,700,000
Flue Cured 23,700,000 25,100,000 5.9         27,400,000
NDDF 6,000,000 5,000,000 (16.7)           7,920,000
SDF 500,000 425,000 (15)
GRAND TOTAL 147,800,000 176,525,000 19.4 171,020,000


3rd Round Estimates (kg) for 2017/18 versus Demand

TOBACCO TYPE 3rd Round 2018 PROJECTION 2018 Demand % change over 2018 Demand Actual Sales (kg)
Burley 146,000,000       135,700,000 7.6          138,485,088
Flue Cured 25,100,000         27,400,000 (8.4)         21,864,316
DFC 5,425,000           7,920,000 (31.5)  3,967,598
GRAND TOTAL 176,525,000 171,020,000 3.2          164,317,002