Tobacco crop: fixing minimum prices

Dry Tobacco

However, the federal government has discontinued fixation/notification of minimum prices for tobacco for the last some years.

But the Pakistan Tobacco Board has continued fixation of minimum indicative prices for various types of tobacco in the country.

Dry Tobacco

A pile of dry tobacco

Besides fixation of minimum prices of tobacco, the weighted average prices of flue-cured Virginia and White Patta tobaccos stand protected under the provincial laws in Khyber Pakhtunkhwa.

It has been the persistent demand of tobacco growers that prices for tobacco be fixed/announced before sowing of tobacco nurseries so that they could decide whether to grow tobacco or go for other competing crops.

At a meeting held at the Pakistan Tobacco Board’s office at Peshawar on Dec 14, 2011, a minimum indicative price of Rs117 a kg was fixed for flue-cured Virginia tobacco crop 2012.

It may be mentioned that the minimum indicative price gives a guarantee to growers that even in surplus supply situation prices will not go down below the minimum indicative prices.

However, tobacco growers are not happy with the minimum indicative price of Rs117 a kg and have, according to media reports, rejected the new prices and threatened to launch a countrywide protest for meeting their demand.

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One Response to Tobacco crop: fixing minimum prices

  1. Abdul Samad Safi says:

    As the tobacco growers of kpk are fighting for a more realistic cost of production,pakistan tobacco with the help of tobacco compnies announced an un realistic purchasing price of Rs 117 per kg. It is merely exploitation of the growers. The growers protested this unfair and low price but tobacco board playing his role as an exploitation tool in the hands of tobacco compnies. it is really an ambarrasing situation for tobacco growers.They demanded at least Rs 200 per kilo rate because the real cost of production is Rs 198.50 per kg. So it is a fair demond and the board should accept this demond.Otherwise the growers will opt for other crobs which are profitable for them.

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