Malawi’s Tobacco Quotas: A New Era for Local Business Growth
Key Business Points
• Tobacco industry stakeholders must align production with market demand to stabilise prices and avoid oversupplying.
• Stronger contract farming oversight and improved registration systems will help close gaps in accountability.
• Reducing illegal trade and cross-border vending will protect farmer earnings and boost sector transparency.
The Tobacco Commission is calling for greater alignment between tobacco production and actual market demand, aiming to restore order in an industry that saw oversupply last year.
Reverend Timothy Nyasulu, the commission’s board chairperson, highlighted growing concerns over the industry producing more tobacco than buyers were willing to purchase. During last season’s period, Malawi produced 221 million kg of the crop while buyers demanded only 213 million kg. This mismatch disrupted the market, causing prices to fall from about K5 217 per kg to K4 522.
The warning came at the recently held 2026 Tobacco Industry Conference in Lilongwe held before the planting season kicks off, a timing chosen to give the sector a clear direction early. Nyasulu says the earlier the coordination starts, the better for orderly production and sustainable industry growth.
Minister of Agriculture Roza Mbilizi also stressed the need for stronger regulatory measures. She urged the Tobacco Commission to close gaps in oversight and reinforce production discipline to prevent a repeat of last year’s market shake-up.
Mbilizi cautioned that allowing overproduction damages both Malawi’s reputation abroad and local farmers’ incomes. She outlined priorities for achieving order in the sector: tightening the production registration system, strengthening the contract farming framework, curbing illegal tobacco sales, cutting cross-border trade loopholes and boosting trust between buyers and growers.
Adding to the debate is concern about buyer behaviour under contract farming. Farmers often rely on secured purchase agreements, but when buyers don’t fully honour their commitments, the sector’s credibility suffers. Mbilizi emphasised that buyers must also be held to account.
Abiel Kalima Banda of Tama Farmers Trust expressed some cautious optimism. Thanks to improved rains this season, most farmers are expecting a healthy crop but demand will only be firm if the leaf quality remains high. Banda pointed out that awareness campaigns have helped improve farming knowledge, which should help growers deliver the right grades.
Earlier plans to boost domestic tobacco processing may also help absorb more leaf locally and soften the industry’s reliance on seasonal export fluctuations. However, sharp focus is still needed on actual market needs and enforcement of better planting discipline.
If implemented well, these interventions could give the sector a stronger path toward reliability, better farmer welfare and improved earnings. Going forward, the industry’s future depends on closing regulatory, operational and trust gaps throughout the supply chain so that both production and sales stay growth-oriented and well balanced. at the
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