Tobacco demand grows to record 86m kilos

Published December 22, 2022
A FARMER transports flue-cured Virginia (FCV) tobacco to a company facility. The demand for this type of tobacco, used in cigarettes, is the highest at 82.7m kilograms for the next year.—Photo by the writer
A FARMER transports flue-cured Virginia (FCV) tobacco to a company facility. The demand for this type of tobacco, used in cigarettes, is the highest at 82.7m kilograms for the next year.—Photo by the writer

SWABI: The demand for tobacco has been set at a record 85.8 million kilograms for the next year, significantly higher than the current year’s 53.575m kg, leaf managers and growers told Dawn on Wednesday.

The high requirements, announced by the buyers through the Pakistan Tobacco Board (PTB), have sent officials of multinational and national tobacco companies scurrying around the fields to secure agreements with farmers, sometimes on the spot.

Tobacco demand from buyers was 45.6m kg in 2019 and 56.48m kg in 2021. Growers and company officials agreed that the next year’s demand of 85.8m kg was a record high.

The requirement for flue-cured Virginia (FCV) tobacco — used in cigarettes — is the highest at 82.7m kg, including 71.7m kg in the plain areas, 10m kg in sub-mountain regions and 1m kg in Punjab.

The demand for dark air-cured (DAC) tobacco, which is produced in Gujrat and Okara, is 1.7m kg. The requirement for sun-cured rustica tobacco (or white patta) is 565,000 kg and for light air-cured tobacco (burley) is 360,000 kg.

Of the total FCV demand, 37.5m kg is planned to be exported to different countries, leaving 48.3m kg to be purchased and utilised in cigarette making by multinational, national and small cigarette manufacturers in Pakistan.

A PTB official told Dawn that different companies, dealers and agents exported some 22.4m kg of tobacco during 2021-22 for over $77.3m and now expected more foreign exchange in the future.

A leaf manager, who wished not to be named, told Dawn that a few European countries considered Pakistan a cheap market for purchasing the crop and they had already nominated their agents who would purchase tobacco for them.

“A tough competition to acquire tobacco is expected and officials of companies have already started approaching farmers, even visiting them in their fields and issuing agreements on the spot,” he said.

Published in Dawn, December 22nd, 2022

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

X post facto
Updated 19 Apr, 2024

X post facto

Our decision-makers should realise the harm they are causing.
Insufficient inquiry
19 Apr, 2024

Insufficient inquiry

UNLESS the state is honest about the mistakes its functionaries have made, we will be doomed to repeat our follies....
Melting glaciers
19 Apr, 2024

Melting glaciers

AFTER several rain-related deaths in KP in recent days, the Provincial Disaster Management Authority has sprung into...
IMF’s projections
Updated 18 Apr, 2024

IMF’s projections

The problems are well-known and the country is aware of what is needed to stabilise the economy; the challenge is follow-through and implementation.
Hepatitis crisis
18 Apr, 2024

Hepatitis crisis

THE sheer scale of the crisis is staggering. A new WHO report flags Pakistan as the country with the highest number...
Never-ending suffering
18 Apr, 2024

Never-ending suffering

OVER the weekend, the world witnessed an intense spectacle when Iran launched its drone-and-missile barrage against...