The Malawi tobacco market has opened, with a secret price bidding exercise being implemented for the first time, reported Nyasa Times.

The marketing season was officially opened April 20 by the Minister of Agriculture and Irrigation, Francis Kasaila, at the Lilongwe Auction Floors. This is the first time a price bidding exercise has been implemented and is part of the measures being taken to prevent the spread of COVID-19. The tobacco marketing season is a significant event for the local economy, as it boosts foreign exchange reserves, subsequently strengthening the local currency against major convertibles.
Due to social distancing measures, only 3,000 bales a day will be put up for sale, compared to 10,000 bales a day in previous years. At the opening of the market, stakeholders were observing social distancing, wearing face masks and sanitising their hands as part of the compulsory measures which have been put in place.
According to the report, on the opening day the maximum prices for contract tobacco reached USD 2.30 and non-contract leaf USD 1.20, despite some minor problems with grading and the mixing of grades. Minister Kasaila stressed the importance of stakeholders working together with farmers and expressed his optimism for the season, despite the ongoing pandemic. Chief Executive Officer, Kayisi Sadala, reiterated President Peter Mutharika’s directive that it was important for the tobacco markets to open, in order to protect growers.