Tobacco Earnings Drop as Auction Rejections Hit Early Sales
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Malawi’s tobacco farmers are earning less in the early weeks of the 2026 marketing season due to lower prices and high rejection rates in the auction system.
According to a report by the Tobacco Commission, the country sold 19.3 million kilogrammes of tobacco valued at US$40.8 million between April 20 and May 14, 2026.
This marks a decline from the 22.4 million kilogrammes worth US$51.8 million sold during the same period last year.
The average tobacco price has also dropped from US$2.32 per kilogramme to US$2.12, reducing profits for growers already burdened by rising production costs.
Contract tobacco accounted for 16.3 million kilogrammes, representing 84.5 percent of total sales during the period under review.
Meanwhile, auction burley tobacco recorded a rejection rate of 91.8 percent, with most bales rejected by buyers. Overall rejection rates for both auction and contract tobacco currently stand at 6.8 percent.
Tobacco Commission spokesperson Terephorus Chigwenembe said contract sales continue to perform well and have helped stabilise the market despite ongoing challenges affecting the auction system.
He added that discussions with stakeholders are underway to improve auction performance and reduce rejection rates to single-digit figures.
