AHL Group has shown that the first week of the tobacco market season has made $7.3 million (about K5.4 billion), an amount deriving from a recommended minimum price of $1.28.
The above figures ma be a ray of hope, as AHL Group Corporate Affair Manager Tereza Ndanga said that the numbers may mean that there will be increase total sales this year. This would also mean that the Forex will stabilize in the country.
However, most selling floors in the country have noted that there was a high rejection rate from buyers, as well as lower prices than the recommended lower price, meaning that the total sales will either be slightly lower than last year’s, or they will be higher but could have done better. Factors to the chaotic selling floors are traced not only to the buyers but tobacco farmers as well, since Tobacco Association of Malawi President Abiel Kalima Banda said that farmers brought low grade leaf.
Meanwhile all stakeholders are concerned over the lowered tobacco demand by buyers, which was announced when farmers already harvested 35% higher than the demand that the buyers wanted.