The 2026 Tobacco Marketing Season opened yesterday at Lilongwe Floors with buyers rejecting a record 90 percent of the leaf, raising concerns over compliance, pricing and the early direction of Malawi’s most vital export market. Tobacco Commission (TC) officials said the high rejection rate was largely due to farmers not presenting a minimum price card, a key requirement in determining floor prices. Minister of Agriculture, Irrigation and Water Development Roza Fatch Mbilizi, speaking during the opening of the market, said adherence to market rules is important to ensure fair value for farmers and stability in the sector.

“The performance of this market determines Malawi’s economic trajectory,” she said, describing farmers as heroes whose output remains key to the country’s foreign exchange position. Mbilizi appealed to buyers to buy all tobacco produced while cautioning against exploiting current supply conditions. Mbilizi appreciates the quality of the leaf during the openingof the market in Lilongwe yesteday. | Jacob Nankhonya “There is overproduction, but no single leaf should be bought at lower than the market price,” she said.

The 2026 Second Round Tobacco Production Estimates Survey indicated that Malawi is expected to produce 197 million kilogramme (kg) of tobacco, which is 14 percent higher than buyers’ demand of 170 million kg. Early market signals yesterday pointed to weaker pricing compared to last year. Data from the floors show that the highest price on contract farming was $3 (about K5 252) per kg with lowest at $1.20 (about K2 101) per kg compared to last year’s opening price of $3.20 (about K5 603) per kg.

On the contrary, the highest price on the auction market was recorded at $2.50 (about K4 377) per kg with the lowest price recorded at $2 (about K3 502) per kg compared to last year’s opening price of $1.80 (about K3 151) per kg. In her speech, TC vice-board chairperson Ebbie Mathanda said the sector’s performance twill depend not only on global market conditions, but also on compliance with standards. “Our farmers are here to change the foreign exchange situation,” she said, noting that Malawi’s forex reserves have been under pressure.

Mathanda said the industry needs to remain responsive to market demands, including meeting environmental safeguards and eliminating child labour. Meanwhile, AHL Group board chairperson Ben Botolo urged farmers to meticulously grade their produce, but did not directly link the rejection on opening day to poor grading. “Farmers must meticulously grade their produce to avoid rejections or being offered minimum prices,” he said, adding that AHL Group is prepared to run the market efficiently and is investing in modernising auction floors to reduce costs.

Botolo, who is also Admarc Limited general manager, appealed to buyers to pay farmers on time, stressing that the auction system remains a critical platform for linking producers to markets. Despite the early challenges, market stakeholders remain cautiously optimistic that the market will stabilise as compliance improves and volumes adjust. However, the opening day developments highlight deeper structural tensions, balancing supply with demand, ensuring fair pricing and maintaining the credibility of the auction system at a time tobacco earnings remain central to Malawi’s fragile foreign exchange position.

Chinkhoma Floors in Kasungu is expected to open today while Limbe Floors in Blantyre and Mzuzu Floors will open on April 23 May 5, respectively. The number of buying companies has this year dropped to eight this year from 11 and the firms are JTI Leaf (Malawi) Limited, Alliance One Malawi, Limbe Leaf Tobacco Company, Hail and Cotton (Malawi) Limited, Premium Tobacco Limited, Associated Central African Limited, African Tobacco Services and Nyasa Manufacturing Company. Last season, tobacco raked in $539.4 million (about K944.66 billion), record earnings in over 10 years. Tobacco remains Malawi’s main foreign exchange earner and contributes about 60 percent to the country’s foreign exchange earnings and 13 percent to the economy.