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Tag: MIP

  • Pakistan Sets Prices to Stabilize Tobacco Crop

    Pakistan Sets Prices to Stabilize Tobacco Crop

    Tobacco growers in Pakistan have welcomed the federal government’s decision to set a Minimum Indicative Price (MIP) for various tobacco types, calling it a crucial step for protecting growers’ incomes. The Economic Coordination Committee approved the MIP, making it mandatory for tobacco companies to buy surplus crop at or above the set prices, in line with tobacco marketing law MLO-487.

    Farmers pointed to rising input costs, with tobacco cultivation costing up to Rs1.9 million ($6,650) per hectare, compared to around Rs300,000 ($1,050) for wheat. “If tobacco prices drop, farmers risk losses in the hundreds of thousands,” said former Pakistan Tobacco Board (PTB) director Muhammad Ayaz.

    MIP rates include:

    • Flue-cured Virginia: Rs545/kg ($1.91) (plains), Rs615.9/kg ($2.16) (sub-mountainous areas)
    • White Patta: Rs262.6/kg ($0.92)
    • Barley: Rs316/kg ($1.11)
    • Dark air-cured: Rs388.9/kg ($1.36)
    • Naswar/snuff/hookah: Rs262.6/kg ($0.92)
    • Sun-cured Virginia: Rs350.2/kg ($1.23)
  • Pakistani Growers Demand Fair Prices

    Pakistani Growers Demand Fair Prices

    In a letter to the Pakistan Tobacco Board (PTB), farmers demanded that the minimum indicative price (MIP) be examined for the upcoming purchasing season. The letter said historically the Economic Coordination Committee kept MIP almost equal to the cost of production (COP), and thus there was virtually no return for the eight months of rigorous labor.

    “Tobacco growers are playing a critical role in the tobacco industry, generating employment for thousands, revenue for the federal government through taxes and foreign exchange from exports,” the letter said. “Therefore, time has come to realize the contribution and hardships of growers.”

    The letter further said there was a dire need for improving the economic condition of growers because if they fail the tobacco industry will collapse and cause unimaginable economic and social loss to the country.

    According to the requirements of tobacco marketing law MLO-487, the average market price should not be less than the previous year. However, the letter noted, that the tobacco marketing law had been flagrantly violated by the companies and that the PTB constantly sided with those companies over the growers.

    Officials of companies said they purchased tobacco according to the price set by the government.