Tobacco Asia

56 tobaccoasia LEAF NEWS 烟叶新闻 The Commerce Ministry issued the decision allowing registered growers who exceeded their production limits, as well as unregistered growers, to sell their tobacco through authorized auction platforms. The measure temporarily relaxes provisions of the Tobacco Board Act and brings additional volumes into the established auction system. The move follows a sharp increase in FCV production. The Tobacco Board set the authorized production level at 142 million kg, while estimated output has reached about 236 million kg. By September 24, growers had sold 111.64 million kg, representing 47.3% of estimated production, over 148 auction days. Market conditions have remained challenging amid the higher availability. Carry-over stocks, softer export demand, slower procurement and larger volumes of lower-grade and off-style tobacco have affected sales. No-bids, which initially reached about 40%, had fallen to around 10% by late September, while weekly auction volumes increased to about 10 million to 11 million kg. The average price stood at INR213.27 (US$2.28) per kg through September 24, down from INR248.86 (US$2.66) per kg during the 2024-25 season. Higher-quality NLS (northern light soils) tobacco, however, reached about INR346 (US$3.70) per kg in recent auctions. The government also waived additional service charges and penalties on excess tobacco produced by registered growers. The measure covers an estimated INR2.26 billion (US$24.2 million) in charges. About 43,586 registered growers cultivated FCV tobacco across approximately 114,423 hectares during the season. Andhra Pradesh has separately introduced price-deficien- cy compensation of INR10 (US$0.11) per kg for specified low-grade and off-take tobacco. The program covers an estimated 94 million kg and represents about INR940 million (US$10.1 million). The latest decision follows a July review of the state's FCV tobacco market by India's Department of Commerce. Officials visited the Tobacco Board's auction platform at Vellampalli and reviewed auction operations and market conditions with growers and other stakeholders. Zimbabwe Tobacco Hits Record Zimbabwe's tobacco industry produced a record crop in 2026, but falling prices are prompting growers to scale back produc- tion for the coming season. More than 357 million kg of tobacco reached the market during the 2026 marketing season, surpassing the previous record of about 355 million kg set in 2025. However, the increase in production came as average prices declined sharply. Figures from the Tobacco Industry and Marketing Board (TIMB) show that the average price fell to US$2.49 per kg from US$3.32 per kg in 2025. Total sales value also dropped by about 24% to US$893.88 million despite the higher volume. The price decline was particularly pronounced on auction floors, where growers received an average US$1.90 per kg, compared with US$2.55 per kg for contract tobacco. Contract sales accounted for more than 91% of the crop, while auction sales represented less than 9%. The lower returns have coincided with a sharp decline in registrations for the 2026/27 season. By September 18, only 27,543 farmers had registered, 41% fewer than the 46,587 growers registered at the same point last year. Seed sales also fell 37% to 868,785 grams. Based on those sales, the estimated tobacco-growing area has dropped from 277,680 hectares last season to 173,757 hectares, a reduction of about 103,923 hectares. Zimbabwe Tobacco Association president Graham Ross said there were "very mixed feelings on the market and indeed the bottom line," citing a "local, regional and world oversupply situation" as a factor affecting grower returns. TIMB c.e.o. Emmanuel Matsvaire also linked the pricing pressure to higher production. "High volumes naturally introduce market pressures, which negatively affect pricing," he said, pointing to increased production in major tobacco- producing countries including Brazil and India. Zimbabwe's tobacco production has expanded considerably in recent years. Growers marketed about 184 million kg in 2021, 213 million kg in 2022 and 296 million kg in 2023. Production then fell to about 232 million kg in 2024 following an El Niño-induced drought before rebounding to about 355 million kg in 2025. Malawi Tobacco Braces for El Niño Malawi's tobacco industry is increasing its engagement with growers ahead of the 2026/27 farming season as the country prepares for the potential effects of El Niño. The Tobacco Commission convened an El Niño preparedness meeting in Lilongwe in early September, bringing together industry representatives, grower associations, buying companies, Auction Holdings Limited (AHL) and the Agricultural Research and Extension Trust (ARET). Participants agreed to intensify communication with growers through extension services and mass media. The campaign will provide farmers with information on recommended farming practices and complement government awareness efforts. Tobacco growers are underway with the new season; nursery preparation started in September. Malawi's 2026/27 seasonal outlook from the Department of Climate Change and Meteoro- logical Services forecasts below-normal rainfall across most areas of the southern and central regions. The northern part of the country could receive normal to above-normal rainfall. Controller of agricultural services (institutions) at the Ministry of Agriculture, Irrigation, and Water Development Dr. Jeromy Nkhoma called for coordinated action across the tobacco industry to reduce the potential impact on production. "Industry players should not approach this as competition because the phenomenon affects the whole economy. Those who come across helpful information about the phenomenon should share with the whole industry," Nkhoma said. He also urged industry participants to develop strategies to maintain crop health and help turn information from the Department of Climate Change and Meteorological Services into practical guidance for growers. ARET recommended several measures during a technical presentation, including drought- tolerant seed varieties, deep plowing and staggered sowing. El Niño can bring prolonged dry spells and below-normal rainfall, creating challenges for tobacco production. The industry's preparedness effort therefore focuses on helping growers adjust farming practices ahead of the new season. Tobacco remains an important part of Malawi's econo- my. Government data estimates that the crop has historically contributed 12% to 15% of GDP and accounted for more than half of the country's merchandise exports in some years.

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