The Tobacco Commission has remitted 1.5 billion kwacha to government as profits from their 2024/2025 financial year operations, which is on the higher side comparing with last season's 250 million kwacha.

Speaking during the cheque presentation in Lilongwe, TC Board Chairperson Commissioner Godfrey Chapola, says favourable rains in the 2024/2025 growing season lead to good production of tobacco.

Chapola hinted that the 1.5 billion kwacha signals that the state entity is financially health, attributing to reforms currently being implemented at the regulatory body.

He said. "Our success in 2024/2025 has not come easily. It has taken great determination and a generous dosage of effort.

Our performance has mainly been a result of institutional reforms."

He revealed that the tobacco industry is recovering from 2023 low output, where 85 million kilograms of the leaf was produced, the lowest volumes since 2012.

"In that year we failed to remit dividends to government," he disclosed.

To his part, Finance Minister Simplex Chithyola Banda, commended TC for remitting the profits to government, with emphasis that treasury operations depend on steady revenue inflows.

Without mentioning names, Banda, bemoaned with performance of some state enterprises, saying they are not remitting dividends to government.

"The remittance of dividends is enshrined in the Public Finance Management Act of 2022 and the Dividend and Surplus Policy for statutory bodies. My Ministry is currently reviewing this policy to ensure it is aligned with reforms in the regulatory environment," he added.

Speaking earlier, Minister of Agriculture Sam Kawale, hinted that agriculture remains a cornerstone of Malawi economy.

Meanwhile, the Tobacco Commission has extended the 2024/2025 tobacco selling season to 12 September, to accommodate farmers sell their leaf.

This comes a week, after another extension, as three markets of Lilongwe, Chinkhoma and Mzuzu remain open while Blantyre auction floors was closed on 8 August.