Malawi's agricultural sector has experienced a significant setback as tobacco earnings plummeted by K377.6 billion during the first 19 weeks of the 2026 marketing season, according to Malawi24. The country earned K489.5 billion from its primary foreign exchange earner, a sharp decline from the K867.1 billion recorded over the same period in 2025. The Tobacco Commission reported that the revenue drop was driven by a combination of lower production volumes and weaker prices.
By the end of the 19th week, farmers had sold 142.4 million kilograms of tobacco, down from 197.2 million kilograms during the corresponding period last year. The average price also fell to $1.98 per kilogram this season, compared to $2.54 per kilogram in 2025. In United States dollar terms, overall earnings reached $282.5 million, down from $500.4 million the previous year.
Contract farming dominated the market, accounting for over 93 percent of all tobacco sold. However, auction sales struggled significantly, with the Tobacco Commission reporting that nearly 51 percent of all auction bales were rejected by buyers. To prevent the auction system from collapsing, Tobacco Commission Public Relations Officer Telephorus Chigwenembe stated that the regulatory body is introducing a "Know Your Farmer" initiative to better track where auction tobacco originates and how it is processed.
The Tobacco Commission has announced that all four of the country's tobacco markets will officially close on September 10, 2026. The difficult season has prompted agriculture expert Ronald Chilumpha to note that young farmers are increasingly questioning whether tobacco remains a viable investment, as excessive rains and fluctuating prices make financial planning difficult.