Pak to Produce Surplus Tobacco Despite Floods

Source from:  Daily Mail News 10/25/2010

KARACHI - The tobacco crop in Pakistan is likely to be little higher than the demand estimated by the tobacco companies for the year 2010 despite massive floods in Pakistan… According to the trade sources the production of most consumed tobacco in Pakistan - Flue cured-Virginia is estimated to be at 84 million kgs as against the demand of 70 million kgs. Similarly the production other types of tobaccos i.e. Dark air-cured, white patta and Burley are expected to be 2.385 kgs, 3.665 kgs and 0.1 million kgs as against demand 2.825 mkgs and 5.393 million kgs. The surplus production of tobacco is meant for export and it is expected to fetch a few million dollars as export proceeds. In Pakistan, although tobacco - a precious cash crop cultivation occupies a relatively small area of 0.27% of the total irrigated land in the country and about 3% in Khyber Pakhtunkhwa, it is of great economic value as a source of revenue, employment and foreign exchange earnings to the country. During 2008- 2009, a sum of about Rs 46.47 billion was contributed to the federal exchequer as Federal Excise Duty and Sales Tax. Being a highly labour-intensive crop, about 80 thousand persons are involved in its cultivation, fifty thousand are engaged in cigarette factories of the tobacco industry and another one million find indirect employment. It is also an important source of foreign exchange earning for the country (Pak. Rs.978.14 million during 2008-2009). Had the production of tobacco crop not been developed by the Pakistan Tobacco Board on the scientific lines, the country would have been importing raw material worth about Rs.10 billion per annum, sources said. The projected requirements from tobacco crop 2010 of Flue-Cured Virginia and Dark Air-Cured were higher by 0.06% and 31.04% compared to requirements by tobacco companies during 2009 crop while those of White Patta and Burley were lowered by 4.55% and 16.67% compared to requirements during 2009 crop, respectively. The former Secretary, Pakistan Tobacco Board, Khan Faraz said that the Board in collaboration with tobacco companies, held meetings in tobacco growing areas to inform the growers about the targeted requirements of tobacco companies for 2010 crop, to find out their problems and to educate them about the cultural operations, plant protection measures, topping and control of suckers, picking and curing operations. The field officers of the Board and tobacco companies also held meetings with growers in different villages of tobacco growing areas for the above said purpose. Enditem