Tobacco board warned against manipulating production cost

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SWABI: Local growers have warned the Pakistan Tobacco Board and the commerce ministry against manipulating tobacco’s production cost for the next year under the ‘influence’ of multinational companies.

The warning was issued during a meeting of the Kashtkar Coordination Council here on Thursday, where KCC district general secretary Liaqat Yousufzai in the chair.

The agenda was to discuss the ‘initiated cost of production’ survey by the commerce ministry.

The survey carries out by PTB in the tobacco cultivating districts of Khyber Pakhtunkhwa.

Participants said the cost of production of flue-cured Virginia (FCV) was fixed at Rs160 per kilogramme last year, while it was calculated at Rs225 per kg for the next year.

He said the cost of the production of white patta (WP) tobacco was Rs92 per kg and that the growers’ leaders had made it clear that it should be increased to Rs107 per kg for 2015.

“There’s always been a great gap between growers and companies. The gap has caused great losses to growers and thus, growing their vulnerability to bankruptcy,” he said.

The other speakers said the team nominated for the cost of production survey had already completed its work in Mansehra district.

Currently, they work in Buner district.

The team has planned to visit Swabi, Mardan and Charsadda districts and once the visit to all tobacco growing areas is over, the process will begin to finalise the cost of production in light of their survey. However, the opinion of the companies will be entertained.

The participants said both companies and growers were part of the team but like the past, the companies had devised strategies to manipulate the cost of production.

Published in Dawn, October 3rd, 2014

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