Companies warned against delaying tobacco purchase

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SWABI: The Pakistan Tobacco Board (PTB) has warned that strict action would be taken against the companies if they don’t begin purchasing the crop from growers at the earliest.

In a letter to the companies, the board said that they would be violating the tobacco marketing rules if they delayed the purchasing process.

“Companies and dealers are directed to open their purchase centres and start purchasing tobacco immediately and submit a compliance report within three days. In case of non-compliance, strict action will be initiated against them under Section 24 of the PTB Ordinance, 1968,” said the letter.

The letter recalled that in pursuance of Rule No 10(1) of the Marketing Control Rules, 2016, PTB had stipulated that companies would purchase Flue-Cured Virginia tobacco in the plain areas from July 8 to 11, and a letter in this connection was sent to them.

However, as per reports issued by the assistant development officer, PTB, the companies and dealers have not yet started purchasing tobacco, which is a clear violation of Marketing Control Rules, 2016.

“All companies and tobacco dealers shall commence purchases of tobacco from the date or dates as may be fixed by the board in the manner specified in sub-rule (1),” said the letter.

Last year, small cigarette manufacturers and dealers did not purchase tobacco until it was declared surplus, buying the product at a very low price.

Representatives of the national and multinational companies claim that last year they procured the surplus tobacco at the Minimum Indicative Price of Rs545 per kg. They added that the tobacco’s weighted average price was set at Rs719 per kg last year.

The delayed purchases caused growers huge financial losses.

Published in Dawn, July 20th, 2026

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