Malawi has earned US$216 million from the sale of tobacco during the 2018/19 marketing season, Agriculture Minister Takondwa Nankhumwa said on Monday.
According to the minister, the earnings were from the sale of 147 kilogrammes of tobacco at the country’s four auction floors nationwide.
Last year the tobacco farmers earned US$330 from 202kg of the crop at the local markets, records show.
The 2018/19 marketing season opened in April and is expected to end on 16 September.
Nankhumwa, however, assured farmers who will be unable to sell their crop by the closing date not worry as “a solution would be found as catered for in the regulations” if they apply to the government to sell the excess production.
This would, however, attract a financial penalty for sales of the excess crop. The farmers are given a quota (figure) of how much tobacco to grow during the farming season.
Some of the farmers, however, exceeded the quotas, thereby failing to grow quality tobacco, according to the Malawi Tobacco Commission.
This resulted in lower tobacco prices on the market this year, the commission said.
Tobacco is Malawi’s number one foreign exchange earner.
NM/jn/APA