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)

The post Pakistan Sets Prices to Stabilize Tobacco Crop first appeared on Tobacco Reporter.

“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.

The post Pakistani Growers Demand Fair Prices first appeared on Tobacco Reporter.