Low Tobacco Prices Spark Outrage: The 2024-2025 tobacco marketing season officially kicked off on Wednesday in Lilongwe, Malawi’s capital, but low tobacco prices have cast a shadow over the opening event. Farmers across the country have expressed dismay and frustration, saying they feel short-changed by buyers offering as little as $1.00 per kilogram for their hard-earned crop.
While some stakeholders claimed the early prices weren’t entirely unexpected due to the type of leaf sold—typically lower-grade tobacco—the general sentiment among farmers was one of betrayal and anger.
“We were expecting higher prices due to the soaring cost of living and input costs. Everything from fertilizer to labour has become expensive,” said a visibly disappointed farmer during an interview with Xinhua. “These low tobacco prices are unacceptable.”
Malawi President Chakwera Opens Season Amidst Farmers’ Protests
President Lazarus Chakwera presided over the opening ceremony at the Auction Holdings Ground in Lilongwe, praising farmers for their role in supporting the economy. He referred to tobacco as Malawi’s “green gold” and emphasized the need for farmers to receive fair compensation.
“I am encouraged that some prices are above the minimum threshold. That’s a good start,” Chakwera told local media. However, his optimistic message was quickly drowned out by protests from disillusioned farmers.
Just hours after the official launch, disgruntled farmers disrupted operations at the auction floor, forcing authorities to temporarily suspend the market. Their demand: better pricing or no sale at all.
Bottom Leaf Pricing Criticized as a Tactic to Justify Low Tobacco Prices
Minister of Agriculture Sam Kawale attempted to explain the situation by pointing out that the initial tobacco sold was the “bottom leaf,” a type typically disregarded due to its lower quality. “The fact that even bottom leaf is fetching between $1 and $3.20 is a promising sign,” he stated.
But the farmers weren’t convinced. They argued that the majority of their crop—regardless of leaf type—was being undervalued. “Most of our bags are being bought for around $1. Only a few were purchased above $3, likely to impress the president,” said one farmer, inciting murmurs of agreement from fellow producers.
Rising Costs and Loans Deepen the Impact of Low Tobacco Prices
Many farmers depend on loans to finance their tobacco production. This year alone, Malawi’s National Economic Empowerment Fund (NEEF) disbursed over MK62 billion to more than 55,000 clients under the Farm Inputs Loan Program, covering a staggering 419,424 acres of cultivated land.
Now, with low tobacco prices, farmers say they’re trapped in a cycle of debt and despair. “How are we expected to pay off loans or even compensate our tenants with these prices?” asked Memory Chikuwi, one of the farmers who joined the protest.
She added: “Imagine buying a bag of fertilizer at K140,000, only for the tobacco to be purchased for a dollar a kilo. That’s exploitation. If these buyers aren’t ready to buy fairly, they should pack up and leave.”
Calls to Exit Market if Low Tobacco Prices Persist
Harrison Kachimera, another tobacco grower, echoed Chikuwi’s sentiments. He warned that if buyers continue offering low tobacco prices, farmers will look for alternative markets or even abandon the trade altogether.
“We would rather keep our tobacco or explore other crops than be subjected to this kind of exploitation,” Kachimera said.
The strong words reflect a growing sense of defiance among farmers, many of whom feel that government and international buyers alike are failing to protect their interests in an industry that contributes over 60% of Malawi’s foreign exchange earnings.
Tobacco Commission Forecasts Higher Output, But Farmers Remain Skeptical
Despite the protests, the Tobacco Commission has projected a bumper harvest this season, expecting a 30.84% increase in production to 174 million kilograms. This was meant to be a positive indicator for both farmers and the economy, but the optimism is being drowned out by the reality of low tobacco prices at the onset of the marketing season.
“If we produce more and earn less, then what’s the point?” one farmer asked. “Volume without value only benefits the buyers, not us.”
A Call for Transparency and Fair Trade in Malawi’s Tobacco Industry
The issue of low tobacco prices has once again brought to the forefront calls for reform and transparency in the tobacco trading system in Malawi. Farmers want better price-setting mechanisms, less collusion among buyers, and more protection from the government.
Without such changes, they warn, the country’s top export commodity risks becoming a curse rather than a blessing.
