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Business, Malawi

Malawi farmers in distress as tobacco sales opening stumble at Kanengo Auction Floors

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LILONGWE-(MaraviPost)-What was meant to be a moment of hope for thousands of farmers has instead opened with frustration and anxiety, as the 2025–2026 tobacco selling season begins on a shaky note at the Kanengo Auction Floors in Lilongwe.

On the surface, the figures offer a glimmer of promise — with the highest price observed reaching $2.50 per kilogram.

But beneath that headline number lies a troubling reality: rows upon rows of tobacco bales remain unsold, stamped with the dreaded label “No Sale.”

For many farmers, that label carries heavy consequences.

“It is painful,” said Nixon Soko, a tobacco farmer from Kabudula. “When a bale is marked ‘No Sale,’ it means you must take it back and try again another day. For that day, everything has collapsed.”

The slow pace of buying and widespread rejection of tobacco leaf have cast a shadow over the opening day, leaving farmers questioning whether their months of hard work will pay off.

This unfolding crisis comes in full view of top government officials. Minister of Agriculture, Roza Mbilizi, has already toured the auction floors and is presiding over the official opening ceremony as guest of honour.

Yet even as speeches are delivered and formalities observed, the reality on the ground tells a more troubling story.

Farmers, already burdened by the rising cost of farm inputs, now face the added uncertainty of a market that appears hesitant to buy.

Many fear that if the trend continues, they could be pushed deeper into financial strain.

As the season begins, all eyes are on the auction floors.

For now, hope hangs in the balance — and for Malawi’s tobacco farmers, the stakes could not be higher.

According to figures released by the Tobacco Commission, projected production for 2026 stands at 170 million kilogrammes against a licensed volume of 197 million kilogrammes.

Eight buying companies have been licensed for this year’s season: JTI, Alliance One, Limbe Leaf, Hail & Cotton, Premium Tobacco, Associated Central African Limited, African Tobacco Services and Nyasa Manufacturing.

The 2025 season closed with 221 million kilogrammes sold and the average price at the end of the season was $2.45/kg, generating a total monetary value of $542 million.

Agriculture

Tobacco Farmers in Malawi Suspend Sales Over Low Prices, Express Disappointment with President Chakwera

Maravi Post Reporter

By Jones Gadama

In a dramatic turn of events, tobacco sales at the Kanengo Auction Floors in Malawi have been temporarily suspended due to widespread discontent among farmers over perceived low prices.

The decision comes after most tobacco was sold at an average price of $1 per kilogram, with only a few bales fetching a maximum of $3.20.

Memory Chikuwi, a prominent farmer, expressed frustration over the current prices, stating that they are unsustainable. “Imagine buying fertilizer at K140,000 and the tobacco fetching such low prices.

This is unsustainable. If the buyers feel they cannot purchase our tobacco, they must fold up and leave,” Chikuwi argued.

Harrison Kachimera, another farmer, concurred with Chikuwi, emphasizing that if buyers are not ready to purchase the tobacco at reasonable prices, they should leave the market.

The farmers’ dissatisfaction extends beyond the market prices, with many expressing disappointment with President Lazarus Chakwera’s administration.

Chikuwi and Kachimera’s sentiments reflect a broader discontent among Malawians who feel that the president’s promises of higher prices for their crops have not materialized.

“This is contrary to what President Chakwera promised, that prices will be high. People are disappointed with President Chakwera as he continues telling Malawians lies and failed hopes,” Chikuwi lamented.

The situation is further complicated by issues with unpaid dues and a payment impasse. Mavuto Phiri, a frustrated farmer from Lilongwe, highlighted the lack of transparency and accountability in the payment process.

Phiri sold his tobacco at Chinkhoma auction floors during the 2024 tobacco market season opening, which was officiated by President Chakwera.

However, he has since experienced a frustrating cycle of blame-shifting between banks and Auction Holdings Limited (AHL), with neither party taking responsibility for the unpaid dues.

In response to the crisis, a meeting is currently underway among officials from the Tobacco Control Commission, AHL, and other stakeholders to address the issue.

However, officials from AHL have declined to comment on the matter, fueling speculation and anxiety among farmers.

As the situation unfolds, farmers are exploring alternatives to the current market dynamics.

Chikuwi and Kachimera’s comments suggest a willingness to consider other options, including keeping their tobacco without a market, rather than accepting what they perceive as exploitative prices.

This development raises questions about the future of Malawi’s tobacco industry and the government’s role in supporting its farmers.

The temporary suspension of tobacco sales at the Kanengo Auction Floors highlights the complexities and challenges facing Malawi’s agricultural sector.

As farmers, stakeholders, and government officials navigate this crisis, the need for transparent and sustainable market practices has never been more pressing.

The outcome of the ongoing discussions and the government’s response to the farmers’ concerns will be crucial in shaping the future of Malawi’s tobacco industry.

Malawi

President Peter Mutharika opens 2017 tobacco market season, pleads for fair prices from buyers

Maravi Post correspondent

Mutharika inspecting tobacco at the auction floors

BLANTYRE-(MaraviPost)—State President Peter Arthur Mutharika on Tuesday officially opened the 2017 tobacco selling in the capital Lilongwe with an appeal to buyers that they should offer good price.

Mutharika made the call at Kanengo Auction Floors, where he was flanked by cabinet ministers and other senior government officials.

“As I officially open this year’s tobacco market season, let me ask the buyers to offer better prices to our farmers.  For this industry to be sustained farmers are supposed to be profiting. The farm inputs prices are high so low prices discourage farmers from continuing cultivating the cash crop,” said Mutharika.

He also asked farmers to bring uncompromised quality leaf at the market to fetch good prices.

Last year, Mutharika lashed out to buyers saying they are the ones ripping the country off its profits, and warned his government will not tolerate.

“Our earning has gone down by 8% just because they are paying us less. They are robbing us. What I am saying is that they always say that they will pay fair minimum prices but after the opening day they go back to their old ways. I have met them over 20 times both here, in New York and in Washington.

“The buyers assured me on camera that the prices will be fair in the beginning but they started declassifying the tobacco so they can pay less,” said President Mutharika.

Tobacco in Malawi is regarded as green gold as it contribute over 70 percent of forex in Malawi