Malawi's proceeds from tobacco have gone down by US$ 2 million this year compared to the revenues last year, the country's official tobacco regulatory body the Tobacco Control Commission (TCC) said in Lilongwe on Monday.

"This year has been a terrible year for our tobacco compared to 2005," TCC general manager Godfrey Chapola told reporters. Chapola said Malawi has this year realized US$ 160 million from 155 million kg tobacco produced compared to last year's total production of 145 million kg which earned the southern African country US$ 162 million. Chapola attributed this year's low revenues to low prices at which the leaves were sold at all the country's three auction floors.
He said that this year's low prices might force some farmers not to grow tobacco next year but still expressed great optimism that Malawi would still produce sufficient leaves.
Tobacco prices on the country's three auction floors went to as low as 60 US cents per kg during this year's marketing season. The product alone fetches about 70 per cent of Malawi's total foreign exchange every year and contributes 30 per cent of the country's gross domestic product (GDP)and 25 per cent of the country 's tax earnings. Over 70 per cent of Malawians are directly or indirectly employed by the tobacco industry. Malawi is the world's largest exporter of Burley tobacco. (sra)