Big Issues, News

Malawi: Overproduction Strangles Malawi’s Tobacco Industry


Despite being major a foreign export earner, the future of Malawi’s tobacco is uncertain, President Peter Mutharika has observed. Malawi News Agency’s MARY MAKHIRINGA and EMILY BANDA of write.

Mutharika said the continued dwindling prices of Malawi’s tobacco at the auction floor demands that farmers should start growing other cash crops.

“As a country we need to move away from tobacco as it is the buyers who suggest prices for the tobacco.

“Many times I have been meeting the buyers in person where they promise to provide good prices but they only do that in few days of opening the tobacco market and later go back to the lower prices,” he said.

Mutharika said this on Thursday when he met the International Fund for Agriculture (IFAD) president Kanayo Nwanze.

Mutharika said when prices of products are dictated by buyers and not producers, something is completely wrong.

“The writing is on the wall that we need to move on and start focusing on other crops such as legumes which are fetching good prices in Asia,” said Mutharika.

Malawi’s tobacco’s future uncertain

There are a number of factors that have resulted in tobacco fetching low prices.

Overproduction due to wrong policies is one of the factors responsible for poor prices of the golden leaf.

At the time there is little demand for the leaf Malawi continues to over-produce forgetting the basic economic law of demand and supply.

An attempt to bolster the prices through an initiative called Integrated Production System or IPS is failing to change the situation.

The problem of overproduction came in when the government decided to stop its strict regulation of the industry in the 1990s.

The liberalisation of Malawi’s tobacco market resulted in almost anyone else who wished to grow tobacco to do so.

Related Posts

Leave a reply

Your email address will not be published. Required fields are marked *

  • Kandodo hands over health facilities to Mangochi People.

    The Minister of Health and Population Hon Khumbize Kandodo Chiponda MP, on Tuesday presided over the official handover ceremony for a Maternity wing, Maternity waiting homes and staff house at Lulanga Health Centre in Mangochi. Lulanga Health Centre is a CHAM facility under Anglican Diocese of Upper Shire and is situated 130km from Mangochi Boma,…

  • JB attends BT synod centenary… calls for unity and hard work – honours late Matenje

    By Arnold Mnelemba Former President Dr. Joyce Banda on Sunday, November 8 attended celebrations marking 110 years of service for late Harry Kambwiri Matecheta, the first Malawian Church Minister of Blantyre Synod in the Church of Central African Presbyterian. The celebrations were held at Bemvu Congregation of Ntcheu Presbytery of Blantyre Synod. Before the ceremony,…

  • Minister urges MPs to lead in National Forestry Season

    By Faith Mwafulirwa The Minister of Forestry and Natural Resources Nancy Tembo on Thursday presented in the National Assembly a ministerial statement on the National Forestry Season and Launch of National Clean-Up Day scheduled next Month. In her presentation in Parliament, Tembo reminded all Malawians that every Malawian is charged with the responsibility of protecting…

  • Lowe engages Illovo sugar management; shares notes on best irrigation practices.

    The Agriculture Minister Hon. Lobin Lowe, MP, is currently touring Illovo Sugar company in Nchalo, Chikwawa to appreciate strides the Cane production industry has made and get first hand information on how Illovo is incorporating the Smallholder farmer into their supply chain. Lowe says this tour is very important as he wants to appreciate how…

  • CHILIMA OPENS AGRI-POLICY CONFERENCE; Calls for comprehensive research implementation

    The Malawi’s Vice President Saulos Chilima has opened the 2021 Malawi Annual Agriculture Policy Conference at Bingu International Conference Centre with a call to all stakeholders to undertake comprehensive research activities aimed at producing research findings that will help policy makers to make policies that are good for Malawi. Chilima added that there is a…

  • 24 Irregular Migrants Nabbed; Govt repatriates some back

    The Department of Immigration and Citizenship Services this week arrested 24 foreigners with 14 arrested in Northen Region and other 10 arrested in the Central region of Malawi. Records from the department show that on Tuesday of 25th May, 2021, the department intercepted 14 foreign nationals for crossing into Malawi using undesignated crossing points and…