Kashtkar Ittihad seeks protection for tobacco growers

ISLAMABAD: Kashtkar Ittihad (KI) on Friday urged the federal government to protect tobacco growers, who contribute hundreds of billions of rupees in national taxes, from buyer’s exploitation.

“Both tobacco growers contracted with the multinational and local companies, and non-contract farmers are facing severe difficulties in selling their produce, and they [growers] have been compelled to sell their produce at a very lower price than the officially determined Weighted Average Price (WAP) at their own premises,” KI chairman Syed Dawood Khan said.

He said the WAP of tobacco is set by the Pakistan Tobacco Board (PTB) for the initial quota of Flue-Cured Virginia (FCV) at Rs 719 per kg and the minimum support price for surplus FCV quantities Rs 545 per kg. “Despite fixing the WAP by the PTB, local buyers and unknown dealers are purchasing tobacco from growers between Rs 300 and Rs 500 per kg,” he said, adding that multinational companies, including Pakistan Tobacco Company (PTC) and Philip Morris International (PMI) Pakistan, exploit farmers when the company’s leaf manager deliberately downgrades the crop during purchase. “They reject tobacco bales under one or other pretext just to compel farmers to sell their produce at a lower price,” he said.

KI chairman said that PTB has failed to ensure the purchase of tobacco at the officially determined WAP, forcing growers to sell their produce at prices far below the approved rate.

Secretary KI Asfandyar Khan said the majority of the local companies have so far not handed over agreements to farmers with whom they have signed contracts. He alleged that tobacco shifted from unknown locations is being unloaded at the purchase centres of local companies and purchased there, raising concerns over whether the company is genuinely purchasing tobacco from farmers or buying it through middlemen.

He said that tobacco is one of the most labour-intensive and costly cash crops. When the crop reaches the market, farmers are compelled to sell at low prices, resulting in significant financial losses and placing their livelihoods at risk, he said.

He urged PTB to perform its regulatory role by binding all companies to buy tobacco from farmers at the rates of officially notified WAP. It was the responsibility of PTB to ensure strict enforcement to protect farmers from unfair market practices and financial exploitation, he said.

The KI secretary urged the federal Government, the PTB, the Federal Board of Revenue (FBR), and other relevant authorities to take steps to enforce fair tobacco purchasing practices to protect farmers from financial losses. Concrete action is mandatory for the sustainability of Pakistan’s tobacco sector and strengthening of the country’s economy, he said.

Faridullah Khan, secretary of the PTB, while talking to Business Recorder, said that representatives of the board regularly visit the purchase centres of multinational companies and also warned them that action would be taken against them if they were found responsible for violating any rule. He said that the board also sealed some undeclared purchasing centres with the cooperation of the district administration, he said, adding that the board is making all-out efforts to ensure the purchase of tobacco at rates determined by the PTB.

Copyright Business Recorder, 2026