Tobacco purchase price expected above 420 denars per kilogram, subsidy set at 80, 70 and 60 denars by class

Minister of Agriculture, Forestry and Water Economy Borče Serafimovski said on October 27 at the Oriental Tobacco Forum in Prilep that the average purchase price of this year’s tobacco crop is expected to exceed 420 denars per kilogram. The forum was organised by the International Tobacco Growers’ Association (ITGA) and a tobacco growers’ union, and was attended by producers, representatives of international organisations, scientists and buyers.

Preparing the purchase. According to the minister, the ministry is preparing the purchase with the aim of clear contract terms, transparent valuation and timely fulfilment of buyers’ obligations. He added that producers will receive timely information on demand and purchase terms.

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Support by class. Subsidies will be adjusted to market conditions, and they stand at 80 denars per kilogram for first class, 70 for second and 60 for third. By our calculation, the first-class support is about 19 percent of the expected average price (80 of 420). That is only a ratio of the two amounts, not a final price received by the producer.

What exports mean. Tobacco and tobacco products bring 140 to 150 million euros in export revenue a year, according to figures from the forum. At an exchange rate of about 61.5 denars per euro, that is roughly 8.6 to 9.2 billion denars, by our calculation.

The climate. High temperatures and drought affect yield and quality, so production planning will adapt to climate change with support from scientific institutions, the minister said.

What is not stated. The published reports have no average purchase price from last year, no crop quantity and no area. Without last year’s price it cannot be said whether 420 denars is an increase and by how much. It is the minister’s expectation, not a purchase price that has already been agreed.

Why Prilep. Prilep is a well-known centre of tobacco production in North Macedonia, so the forum was aimed at producers and buyers from that region. Three classes mean that the price and the subsidy depend on quality: the difference between classes in the subsidy is 10 denars per kilogram each, from 80 to 70 to 60.

A worked example. If a producer delivers 1,000 kilograms of first-class tobacco, the support under this scheme would be 80,000 denars. At an average price of 420 denars per kilogram, the same quantity would be worth 420,000 denars. This is only an illustration to understand the scale, since the price by class has not been published, and the real amount depends on the contract and on quality.

What to follow. The real price will be seen in the contracts and in the purchase. For producers, the class, the timeliness of payment and the contract terms matter most, since they decide how much of the expected 420 denars actually reaches them.

MKNews Hub · Macedonia · October 28, 2026