Pakistan: Tobacco Growers, MNCs over Prices Persists

Source from:  Pakistan Observer 07/30/2012

Tobacco is a cash crop of Khyber-Pakhtunkhwa, mostly being cultivated in Buner, Swabi, Mardan, Charssada and Manshera areas with a large variety of Virginia tobacco. The Khyber Pakhtunkhwa government earns a hefty Rs50-60billion in federal excise duty, while nearly Rs250million is generated from the tobacco sector in the province. Similarly, the Pakistan Tobacco Board receives Rs180 million in taxes on tobacco. Despite huge income generation from this sector, exploitation of poor tobacco farmers continues with impunity. Statistics compiled by Pakistan Tobacco Company (PTC), Khyber-Pakhtunkhwa’s total tobacco production is nearly 14 percent higher than the global average, while 22 percent higher than the national level. About six percent tobacco is produced in Buner, 38 percent in Swabi, five percent in Manshera, 25 percent in Mardan, in Charsadda 15 percent, data showed. Similarly, data also showed that an area of 36,016 hectares were under tobacco cultivation in the aforementioned districts of Khyber-Pakhtunkhwa. Total tobacco volume is about 93,080 tons, with a production value of about Rs10.09billion, while its share in national cropped areas is about 64 percent. Pakistan Tobacco Company generated an income of Rs3.9billion in 2011 from the tobacco farming sector in KPK. Enditem