Multinationals begin buying surplus tobacco
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…
Multinational corporations initiated the acquisition of surplus tobacco from Pakistani growers on Wednesday, though local businesses have yet to embark on the process. During a meeting at the Pakistan Tobacco Board's headquarters in Peshawar, tobacco-purchasing companies, entrepreneurs, and union representatives resolved to purchase 47 million kilograms of surplus tobacco from growers.
However, minor delays hindered the commencement of the process, which was set to begin on October 26 or 27. The Philips Morris International began its purchase on Tuesday, followed by the Pakistan Tobacco Company on Wednesday. According to Nasir Khan, general secretary of the Kashthkar Coordination Council, the main demands were: to announce companies' quotas for the next year, have all companies sign agreements with growers, pay farmers through a bank, and hold a tobacco expo in tobacco-growing regions instead of Karachi.
Growers expressed their discontent, stating that despite companies halting the purchase on September 15, the government remained silent on the fate of surplus tobacco for weeks, causing financial losses. The head of the Pakhtunkhwa Kashthkar Jirga, Muhammad Ali Dagiwal, accused the Pakistan Tobacco Board of failing to formulate a strategy for purchasing surplus tobacco over the past 40 days.
The minimum indicative prices (MIP) for surplus tobacco announced by the ministry of national food security ranged from Rs545 for flu-cured Virginia in plains and Rs262.60 for white Patta and other types to Rs388.90 for dark air-cured tobacco. Tobacco companies stated that they would purchase around 20 million kilograms, with the remaining tobacco to be bought by Pakistani firms.
Farmers now fear that companies are delaying the purchase to buy the commodity at lower prices later. Iqbal Shewa, the Kashthkar Ittehad Association’s patron-in-chief, claimed growers had already lost Rs6.5 billion this year due to low prices and would suffer an additional loss of Rs8 billion due to delayed purchases.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
