Pakistan: Tobacco Crop: Fixing Minimum Prices

Source from:  DAWN Group of Newspapers (pk) 05/11/2012

IN the past minimum prices used to be fixed and notified, under relevant laws, by the federal government for various types/grades of tobacco in the country. However, the federal government has discontinued fixation/notification of minimum prices for tobacco for the last some years. But the Pakistan Tobacco Board has continued fixation of minimum indicative prices for various types/grades of tobacco in the country. Besides fixation of minimum prices of tobacco, the weighted average prices of flue-cured Virginia and White Patta tobaccos stand protected under the provincial laws in Khyber Pakhtunkhwa. It has been the persistent demand of tobacco growers that prices for tobacco be fixed/announced before sowing of tobacco nurseries so that they could decide whether to grow tobacco or go for other competing crops. At a meeting held at the Pakistan Tobacco Board's office at Peshawar on Dec 14, 2011, a minimum indicative price of Rs117 a kg was fixed for flue-cured Virginia tobacco crop 2012. It may be mentioned that the minimum indicative price gives a guarantee to growers that even in surplus supply situation prices will not go down below the minimum indicative prices. However, tobacco growers are not happy with the minimum indicative price of Rs117 a kg and have, according to media reports, rejected the new prices and threatened to launch a countrywide protest for meeting their demand. Enditem