Tobacco growers demand MNCs be directed to raise quotas
ISLAMABAD: Tobacco growers on Thursday appealed to a parliamentary panel to direct multinational companies to increase their quotas and purchase tobacco from the farmers, as it is the primary cash crop of some districts in Khyber Pakhtunkhwa and the livelihood of a large population is dependent on its timely sale.
“A huge quantity of tobacco is currently present in the godowns of both contracted and non-contracted farmers; therefore, the government needs to direct multinational and local companies to purchase tobacco from the growers to protect farmers who have already suffered heavy losses due to damage caused by rains and hailstorms to their crops,” a member of the tobacco growers’ association, Muhammad Ayaz Tajabad, told the National Assembly’s Standing Committee on Food Security, which met here with MNA Syed Tariq Hussain in the chair.
He said this when the committee proceeded with a point of order raised by MNA and former speaker of the National Assembly Asad Qaiser, concerning the challenges faced by tobacco growers and the urgent need for a comprehensive policy framework to address their issues.
Ayaz said that during the last two years, a multinational tobacco company has slashed their tobacco purchasing quotas by 33 per cent from 36 million kg to 24 million kg of tobacco.
Despite a major decrease in the tobacco purchasing quota, the exports of tobacco witnessed an increase, which raises questions that from where did the tobacco companies purchase tobacco that resulted in an increase in exports.
He alleged that in the market, there are types of buyers including manufacturers, exporters, and a third type that is neither manufacturers nor exporters. He alleged that tobacco companies, after completing a purchase against the officially announced quota, purchase tobacco from buyers who are neither manufacturers nor exporters.
MNA Shahram Khan Tarakai said that Ministry of National Food Security and Research (MNFS&R) need to ask to multinational companies to raise their tobacco quotas and purchase tobacco from the farmers. Pakistan Tobacco Board (PTB) needs to protect farmers and not crush them, he said, adding that both farmers and industry are inevitable; therefore, the industry needs to cooperate with farmers in difficult time.
He requested the committee to bind companies to buy tobacco at the officially declared rate, as after declaring tobacco surplus they did not purchase tobacco at the official notified rate.
According to a report compiled by Assistant Commissioner (AC) Lahor, Swabi, following the direction of the parliamentary body submitted before the committee said that during field inspections of different purchasing centres, glaring irregularities and exploitative practices were observed that not only jeopardise growers’ incomes but also pose serious questions on corporate compliance with the Pakistan Tobacco Board (PTB) regulations.
The report says multinational companies including Pakistan Tobacco Company (PTC) and Philip Morris.
International (PMI) were found to be disproportionately focusing on top-quality grades of tobacco, while rejecting or under-purchasing lower grades, despite the PTB’s officially defined grading system. Complaints received from farmers at multiple purchase depots confirmed a consistent pattern of arbitrary rejection and under-grading of otherwise acceptable tobacco bales, it says.
The report says that the behaviour of the purchase manager with the farmers was also a question mark.
It says that local companies are violating the PTB’s payment timelines and withholding grower payments far beyond the permissible period.
Several local companies purchase points are failing to fulfill their allotted quotas, it says.
Chairman committee Tariq Hussain, recommended that the secretary of the Ministry of National Food Security and Research (MNFS&R) to convene a meeting with MNAs, Asad Qaiser and Shahram Khan Tarakai, PTB, PTC, PMI, the National Seed Development and Regulatory Authority (NSDRA), the Federal Board of Revenue (FBR), and tobacco growers to address outstanding issues and submit a report within one week.
A senior official of the Ministry of National Food Security and Research (MNFS&R) said that the seed sector faces major challenges, including low seed replacement rate, minimal seed export, dependency on imported seed, unavailability of elite germplasm, and resources for research and development.
To address these challenges, he said that a National Seed Policy 2025 was developed after conducting several consultative sessions.
The vision of NSP 2025 is to develop a vibrant seed system that ensures the availability of quality seeds for sustainable agricultural growth and food security, he said, adding that its mission is to promote the seed industry by adopting modern technologies and elite germplasm, while ensuring the conservation and sustainable use of plant genetic resources and safeguarding the rights of farmers, breeders, and biosafety.
The meeting was attended by MNAs, Rana Muhammad Hayat Khan, WaseemQadir, Nadeem Abbas, Chaudhary Iftikhar Nazir, Abdul Qadir Khan, Syed Abrar Ali Shah, Zulfiqar Ali Behan, Usman Ali, Usama Hamza, Javaid Iqbal, Muhammad Ameer Sultan, Syed Ayaz Ali Shah Sheerazi, Asad Qaiser, Shehram Khan Tarakai, Minister for National Food Security and Research Rana Tanveer Hussain, and senior officials of the MNFS&R and the PTB.
Copyright Business Recorder, 2025