The Tobacco Association of Malawi (TAMA) said the availability of more tobacco on the market had affected prices of the cash crop in the country, as the market principle of demand and supply had come to haunt the tobacco market in Malawi, according to a report on Malawi24.
Chief Executive Officer for TAMA Graham Kunimba said due to the high supply of tobacco on the market in July, buyers are taking advantage by offering prices that are not favorable to farmers.
Kunimba disclosed that the tobacco sold on auction is pegging at 92 cents per kg while tobacco being sold on contract is going at $1.45, which he said is not a good development.
“The overall supply of tobacco on the market is higher than demand and this is prompting buyers to have a selective type of buying,” said Kunimba.
According to the TAMA boss, this year’s overall average of prices is 12% lower than last year’s. He further said that the variation in prices is not good for the sustainability of the tobacco business in the country.