More than 4 million kg of tobacco remain unsold at Mzuzu Floors in Malawi despite the Tobacco Commission (TC) extending the marketing season, a setback that farmers warn could push them into financial ruin. The unsold leaf, worth an estimated K17.2 billion ($9.8 million), represents both a personal crisis for farmers and a blow to Malawi’s economy, which depends on tobacco for over 50% of its foreign exchange earnings.
Farmers say many took out loans expecting to repay them through sales, but with buyers pulling back and prices falling, they are now trapped in debt. “We can’t pay workers or send our children to school,” said Chitipa farmer Hazwell Chikakuda, whose buyers canceled contracts mid-season. “Buyers backed out, and I’ve been selling the remaining leaf at throwaway prices. We feel abandoned.”
TC spokesperson Telephorous Chigwenembe confirmed large volumes of unsold leaf remain both on and off the market, citing an oversupply as the main challenge. Tama Farmers Trust CEO Nixon Lita added that demand has slowed as stocks pile up. While Malawi sold 218.9 million kg of tobacco this season, worth $539.4 million (up from $396 million last year) the glut now threatens foreign exchange inflows and economic stability.
Economists warn that without intervention or diversification, the country risks deepening its dependence on the volatile crop. As one analyst put it, “Unsold tobacco means unpaid loans, empty pockets, and a weaker economy.”