SWABI: The alleged deliberate delay in the minimum indicative price (MIP) announcement by Pakistan Tobacco Board has exposed the helpless tobacco farmers to exploitation, said farmers and their leaders here on Thursday.
Tobacco farmers across the tobacco growing districts in Khyber Pakhtunkhwa and in some areas of the Punjab face growing financial uncertainty as unbelievable delays in the announcement of the MIP have coincided with reports of widespread distress sales and payment issues during the ongoing tobacco purchasing season.
When contacted officials in the tobacco companies told Dawn that under Section 11 of the Tobacco Marketing Rules, 2016, tobacco companies purchased tobacco according to their declared requirements for various grades and types of the crop every year.
However, officials said that concerns have surfaced for the farmers who have produced tobacco beyond the required quantities by both multinational and national companies. With limited market options available, many growers are reportedly under tremendous pressure to sell their produce at prices significantly below government benchmarks.
The issue has been compounded by the absence of an officially notified MIP for this year’s crop.
Under Section 2(i)(3) of Martial Law Order No. 487 (tobacco marketing law), tobacco companies, prior to the commencement of the buying season, are required to prominently display both the Weighted Average Price (WAP) and the Minimum Indicative Price announced by the Pakistan Tobacco Board (PTB). While the WAP has been publicised, the MIP for the current crop has yet to be announced by the PTB, said officials.
Ayaz Khan, former member of board of directors of PTB said that the matter was discussed at the Economic Coordination Committee (ECC) meeting held on 7th September 2026, adding that a proposal regarding the MIP was presented by the Pakistan Tobacco Board after months of delay. However, the proposal was not approved by the forum and was deferred for further consideration but the buying process continues, paving the way for exploitation of growers.
The officials said that the ECC directed PTB officials to resubmit the proposal along with a more comprehensive and justifiable analysis. “More delay in the announcement of MIP would cause more agony among the farmers,” said one of them.
Meanwhile, growers allege that the uncertainty surrounding official pricing has created conditions that allow some buyers and dealers to procure tobacco at prices below expected market levels. Farmers have also raised concerns regarding delays in payment settlements, further increasing financial pressure on households that rely heavily on tobacco cultivation as a source of income.
Published in Dawn, September 11th, 2026
