Tobacco Demand Declines to 8.18 Million Kgs

Source from:  Business Recorder PESHAWAR (November 09 2007) 11/12/2007

The Tobacco corporation has shown a sharp decline in the demand of tobacco, which is estimated around 8.18 million kilogram. The demand of the three types of tobaccos, including Flue-cured Virginia, White Patta and Burley have been declined by 3.94%, 18.13% and 63.14% respectively Business Recorder learnt this by the reliable sources of Pakistan Tobacco Board (PTB). In the year 2007 the demand was 79.160 million kilograms, which has been declined to 70.983 million kilograms in 2008. The requirement of Flue-cured Virginia tobacco has declined from 74.070m kilograms to 66.520m kilograms, white patta from 0.3.870m kilograms to 3.168m kilograms while demand of Burley has gone down from 0.600m kilograms to 0.370m kilograms. Sources said that to tackle the circumstances the board has advised the growers to plan production of tobacco crop 2008 keeping in view the purchase targets of the tobacco industry, adding they said that the board further advised the growers for executing agreements with the tobacco companies for proper marketing and fair prices as well. The tobacco companies would purchase tobacco from 'contracted growers' or 'agreement-holders,' instead from those growers who cultivate the crop without making any prior contract or agreement with a company or independent growers, sources said. Different parts of Pakistan, in general and some districts of NWFP, in particular, produce the quality flue-cured Virginia and other types of tobacco. The crop is being cultivated on relatively small area of about 0.27% of total irrigated land in the country and about 3% in NWFP and with the suitable crop husbandry, it is capable of yielding very high income to the growers as compared to any other cash crop in the country. Prior to 1968, though tobacco was cultivated in Pakistan, its importance in the agriculture sector was insignificant due to inferior quality, low yield and inadequate return. The tobacco industry was then dependent on imported raw material on which a huge amount of foreign exchange was spent each year. In 1968, the government of Pakistan decided to enhance cultivation and export of tobacco and its products on organised basis and Pakistan Tobacco Board (PTB) was also established for the promotion of the cultivation, manufacturing and export of the commodity. In addition to Research & Development activities of the board, the tobacco business and marketing are regulated by federal and provincial laws and PTB is striving for having a better correlationship between production and requirements of the tobacco industry, sources said. The tobacco manufacturing and exporting companies are bound to show their requirement of tobacoo by 21 October of each year in respect of ensuing crop to the Pakistan Tobacco Board. Enditem