The Media Network on Tobacco (MNT) has concurred with the Malawi Government over concerns regarding declining tobacco prices and rising rejection rates across all auction floors since the opening of the 2026 marketing season.
In a press statement issued on Monday, the organisation described the developments as troubling, urging all tobacco buying companies to strictly adhere to pricing regulations outlined under the Tobacco Industry Act.
According to Section 69 (1) of the Act, minimum tobacco prices are required to be determined on the basis of production costs, previous season prices, global demand, and other relevant market considerations.
“The current pricing trends appear to fall short of these legal and economic benchmarks, and this risks undermining the livelihoods of smallholder farmers who rely heavily on tobacco,” MNT said.
The organisation noted that the situation could have serious implications for farmers if left unaddressed, particularly given the crop’s continued role as a major source of foreign exchange and rural income.
“We are closely monitoring reports of low tobacco prices and high rejection rates across all auction floors,” said Alfred Chauwa, President of MNT.
“This is a matter of serious concern that requires urgent attention from all stakeholders in the industry,” added Chauwa.
MNT further called on tobacco buyers to offer prices above the established minimum thresholds and to take immediate steps to reduce rejection rates, which have been increasingly reported by farmers and stakeholders.
“Buyers must now demonstrate responsibility by ensuring fair pricing and reducing unnecessary rejections that are affecting farmers’ earnings,” Chauwa emphasised.
The organisation also commended the Tobacco Commission for engaging with buyers on the matter, describing the intervention as a positive step towards addressing pricing challenges in the sector.
“We commend the Tobacco Commission for engaging buyers on these issues. This reflects a shared commitment to addressing underpricing in the sector,” MNT noted. “However, stronger action is still required from buyers to ensure compliance and fairness.”
Chauwa added that while regulatory engagement remains important, market discipline from buyers is essential for restoring confidence among farmers.
“We expect buyers to align with the minimum pricing guidelines and act in the best interest of sustainable agricultural production,” he said.
MNT concluded by expressing hope that the ongoing marketing season would yield improved pricing outcomes rather than continued distress at auction floors, urging all stakeholders to prioritise stability and fairness in the tobacco market.
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