Economics commentators say dwindling forex supply forced authorities to open tobacco market earlier

Economics commentators say the early opening of this year’s tobacco market is evidence that the country is in desperate need of forex supply.

President Lazarus Chakwera launched this year’s season several weeks earlier on 31 March starting with the main Kanengo Auction Floors.

However, barely four days into the market, the Tobacco Control Commission has postponed the opening of Limbe Floors from 5 to 20 April while also restricting auction days at Kanengo to Mondays, Wednesdays and Fridays only.

In a statement, the commission attributed the two decisions to supply scenario as many farmers are not yet ready with their leaf.

Malawi University of Business and Applied Sciences based economist, Betchani Tchereni said dwindling of foreign reserves at less than two months cover could have prompted the early opening.