SWABI: Tobacco demand increases

Published August 31, 2004

SWABI, Aug 30: A rise in tobacco demand has exposed the tobacco firms' contention that they had enough stock after buying surplus tobacco over the last 10 years, in view of which their quotas were reduced.

The firms announce their quota through the Pakistan Tobacco Board each year and according to the Tobacco Marketing Law they are bound to purchase that from growers. Growers allege that the firms conduct surveys to estimate the expected tobacco production before the cultivation of the crop.

After fulfilling the quota they announce that they do not need more tobacco, leading to lowering of the prices, the growers say. "The demand of the companies for tobacco and deputing staff to go from village to village to procure it has made it clear that the issue of surplus tobacco is created for exploiting the growers," Anjuman-i-Kashtkaran General Secretary Ismail Jan said.

He alleged that the businessmen, political leaders and small cigarette manufactures were in league in the plan to make the growers sell tobacco at throw away prices.

Sources said the firms issued agreements to the growers at the time of purchase in violation of the rules, which required the agreements to be signed before the cultivation of the crop.

They said the firms targeted only the poor growers when the slashed the quota. "The objective of the decrease in quota is to pave the way for the exploitation of growers," a farmer said.

The companies have also reportedly contacted traders to purchase tobacco from them at higher prices. In view of the expected shortage of tobacco in the current year, businessmen have procured a large quantity of the commodity, expecting that they would get high profit by selling it at appropriate time. Leaders of the Ittehad demanded that the companies should announce their actual requirements and purchase tobacco directly from the growers.

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