Multinationals begin buying surplus tobacco

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Growers wait outside a tobacco company for their turn to sell their crop. —Photo by writer
Growers wait outside a tobacco company for their turn to sell their crop. —Photo by writer

SWABI: Multinational companies started purchasing surplus tobacco from growers on Wednesday, but Pakistani firms have yet to commence buying due to unknown reasons.

Officials from tobacco-purchasing companies, entrepreneurs, and representatives of tobacco unions decided during a meeting at the Pakistan Tobacco Board’s (PTB) head office in Peshawar last week to buy surplus tobacco, 47 million kilograms in total, from growers.

“It was unanimously decided at the Peshawar gathering that purchase of surplus tobacco will commence on Oct 26 or 27, but minor hiccups delayed the process by a day. The Philips Morris International started the purchase on Tuesday (27th) and the Pakistan Tobacco Company on Wednesday (28th),” said Nasir Khan, the general secretary of the Kashthkar Coordination Council.

“The four main demands were: (i) the companies announce their quota for next year; (ii) all companies issue and execute agreements with growers; (iii) payment to farmers be made through a bank; and (iv) a tobacco expo be held in tobacco-growing areas instead of Karachi,” Nasir Khan said.

The growers’ leaders protested that although companies had stopped the purchase of tobacco on Sept 15, the government remained silent about the fate of surplus tobacco for weeks, causing financial losses to growers.

They said the PTB had failed to adopt a strategy for purchasing surplus tobacco over the last 40 days, adding that perhaps such a long delay was unprecedented.

“The PTB’s representatives always toe the companies’ line during meetings, leaving the poor growers high and dry,” alleged Muhammad Ali Dagiwal, who heads the Pakhtunkhwa Kash­thkar Jirga. He said it was the joint responsibility of the federal ministry of National Food Security and the PTB to adopt a strategy under which all national and multinational companies buy tobacco from farmers in accordance with the tobacco marketing law.

According to spokespersons for tobacco companies, the minimum indicative prices (MIP) for surplus tobacco, announced by the ministry of national food security, are: Rs545 for flu-cured Virginia in plains, and Rs615.90 per kg in mountainous areas; Rs262.60 per kg for white Patta and other types; Rs316 per kg for dark air-cured tobacco (DAC); Rs388.90 for naswar/snuff/hookah tobacco; and Rs350.20 for sun-cured Virginia.

Representatives of multinational and Pakistani companies said that, as per the announced quota, Philip Morris International and the Pakistan Tobacco Company will buy about 20 million kg. The remaining will be purchased by Pakistani companies.

Delaying tactics

The farmers said growers now feared that companies were delaying the purchase of tobacco so that they could buy the commodity at lower prices later.

Iqbal Shewa, the Kashthkar Ittehad Association’s patron-in-chief, said: “Growers have already lost Rs6.5 billion this year due to low prices. And now they will have to bear a further loss of Rs8bn because of the late purchase.”

Published in Dawn, October 29th, 2026

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