June 26 (Bloomberg) -- Tobacco prices in Malawi, the world’s largest producer of the burley variety of the leaves, dropped 2.4 percent last week, Auction Holdings Ltd. said.
Prices fell to $2.39 a kilogram (2.2 pounds) in the period through June 22 from $2.45 a week earlier, the company, which manages the sale, said in a statement published in the Blantyre-based Daily Times newspaper today. It didn’t give a reason for the decline.
The southern African nation earned $15.9 million from the sale of 6.6 million kilograms of tobacco during the week, Auction Holdings said. Cumulatively, Malawi has earned $120.1 million from 56.3 million kilograms of the leaves sold at an average price of $2.13 per kilogram this season, compared with $1 per kilogram fetched during the same period last year.
Tobacco is Malawi’s biggest foreign-exchange earner, accounting for 60 percent of all revenue earned from abroad. Limbe Leaf Tobacco Co., a unit of Universal Corp., Alliance One Inc., Africa Leaf Malawi Ltd., Premium Tama Tobacco Ltd., Malawi Leaf Co., RWJ Wallace Ltd. and Japan Tobacco Inc. are among the biggest buyers of tobacco in Malawi. They export the leaves to countries in Europe, Asia and North America.
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