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Malawi Tobacco Income May Fall 17% in 2009, Bank Says (Update1 

Malawi, the world’s largest producer of burley tobacco, may earn 17 percent less from sales of the leaf this year because of weaker prices, the Reserve Bank of Malawi said.

Income from tobacco sales may decline to $392.7 million from $472.4 million in 2008, the Lilongwe-based Central Bank said today in an e-mailed copy of its latest Monetary Policy report.

“Tobacco proceeds totaled $213.4 million as of July 10, representing a 25.7 percent decrease on the $287.4 million realized in the same period of 2008,” the report said.

While Malawi set a minimum price of $2.15 a kilogram (2.2 pounds), the leaf has sold for an average of $1.82 a kilogram in the season to Aug. 3, Auction Holdings Ltd., which manages the country’s auction floors, said on Aug. 17.

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