Pakistan: Tobacco Growers Await Support Price

Source from:  DAWN Group of Newspapers (pk) 07/02/2012

SWABI, June 30: Tobacco growers continue to wait for implementation of new support price for their crop on the basis of official survey conducted recently in tobacco growing areas of Khyber Pakhtunkhwa, while the purchasing companies claim that the issue was settled in November last by Pakistan Tobacco Board (PTB). The tobacco purchasing season is expected to commence in the first or second week of July. Officials of national and multinational companies told this correspondent during a chat that leaders of farmers were spreading "rumours" about new the price. However, letter No.F.1-2/2012-CMC, dated June 15, 2012 addressed to the Federal Commerce Ministry by Ministry of National Food Security and Research noted that a survey was conducted "to look into complaints regarding fixing support price of tobacco by Pakistan Tobacco Board". The letter titled "indicative minimum price for tobacco crop 2012" says that the survey revealed that the real cost of production of tobacco is Rs159.5 per kilogramme; the support price of tobacco based on cost of production is proposed at Rs183.4 per kg after adding inflation of 12 per cent and profit margin 3 per cent." According to rules, the Commerce Ministry has to announce the tobacco price. The survey mentions the support price at Rs183.3 per kg while the PTB has earlier fixed it at Rs117 per kg, which shows a huge disparity. The letter makes it clear that the findings of the survey are comprehensive and based on scientific techniques. Liaquat Yusufzai, general secretary of Kashthkar Coordination Council, said that the food security ministry had finalised its work and it was now responsibility of the commence ministry to fix the price for the upcoming purchasing season. "If the ministry fails to implement new price then we will motivate the farmers of all tobacco growing areas in Khyber Pakhtunkhwa to stay away from tobacco buying centres of both national and multinational companies," he said. He said that they had also filed a writ petition in Peshawar High Court and it was demanded that before finalisation of tobacco price the date for commencing purchase should not be announced. On the other hand, the companies' representatives said that the ministry had not yet discussed the new tobacco price with them. Enditem