Tobacco growers in Swabi have urged the Pakistan Tobacco Board (PTB) to arrange purchases of surplus tobacco, saying farmers remain under financial pressure more than a month after the regular buying season reportedly ended on September 15.
Growers say tobacco companies have stopped purchasing after meeting their annual quotas, leaving farmers with limited options to sell their remaining crop. They allege that the resulting shortage of buyers has pushed prices down and weakened their bargaining position.
The dispute has also raised questions about the PTB’s responsibility for managing surplus production and ensuring that tobacco marketing rules are followed.
According to growers, surplus tobacco is being purchased for around Rs. 545 per kilogram, compared with more than Rs. 700 during the regular buying season. They say the price difference is reducing their earnings at a time when many farmers need cash to cover cultivation expenses and household costs.
Tobacco Prices Fall as Buyers Pull Back
Members of the Kashtkar Ittehad Association said tobacco growers were facing difficulties because national and multinational companies had completed their announced purchasing quotas.
Iqbal Khan Shewa, the association’s patron-in-chief, told Dawn that growers were vulnerable to low offers because of their limited financial resources and lack of adequate storage facilities.
Farmers say smaller cigarette manufacturers and independent traders are taking advantage of the situation by offering lower prices for surplus tobacco. Without sufficient storage space or access to credit, many growers cannot afford to hold their crops while waiting for better offers.
Imran Khan, a grower from Maneri Bala, also told Dawn that buyers knew farmers lacked the resources to store their produce for extended periods, leaving them under pressure to accept lower rates.
The growers’ complaints highlight the difficulties faced by farmers who produce more tobacco than purchasing companies have contracted to buy. When the regular buying season closes, finding alternative buyers can become particularly difficult.
PTB Rules Address Surplus Tobacco Purchases
The Pakistan Tobacco Board’s own published guidance sets out procedures for tobacco purchasing, including provisions covering surplus production.
Under its official services for growers, the PTB says purchasing companies and dealers are not supposed to close their purchase depots until they have met their targeted demand or, where surplus production exists, purchased the additional quantity allocated to them by the board in proportion to their purchase targets.
The board also says it monitors purchasing activity, collects data from announced depots and uses vigilance committees to address disputes over grading, rejection and prices.
These provisions are relevant to the Swabi growers’ complaints. However, determining whether any company has breached the rules requires examining its assigned quota, purchases already completed and any additional surplus allocation issued by the PTB.
The board’s Tobacco Marketing Control Rules, 2016 provide the regulatory framework for purchasing and marketing tobacco.
Growers Question Government Oversight
Growers have criticised the PTB for failing to develop a timely plan to purchase the remaining crop. They have also alleged that the board’s approach favours purchasing companies over farmers.
The companies, meanwhile, have said they completed the quotas announced for the season and that the PTB and the Federal Ministry of National Food Security and Research should determine how surplus production is handled.
The dispute reflects a wider challenge in tobacco farming. Farmers invest in growing, curing and storing their crops months before receiving payment, while their final earnings depend heavily on purchasing arrangements and the prices offered by buyers.
When demand falls short of production, growers with limited storage and working capital have fewer options. A delay in arranging additional purchases can therefore leave them carrying the financial burden of surplus production.
The PTB’s published guidance says it forecasts market demand and encourages farmers to enter into agreements with purchasing companies to reduce the risk of surplus or shortfall. It also describes the board’s role in coordinating purchase schedules and monitoring transactions.
PTB Secretary Says Surplus Buying Will Begin
PTB Secretary Fakhruddin told a national daily that the board would soon begin purchasing surplus tobacco from growers.
The assurance offers a potential route out of the immediate impasse, but farmers still need clarity on when purchasing will begin, how much tobacco will be bought and which companies or dealers will be assigned additional quantities.
The PTB has not been independently verified as having published a specific new purchase schedule for the surplus crop described in the growers’ complaints.
For Swabi’s tobacco farmers, the key issue is whether the promised purchasing arrangement will translate into timely sales and fair payment. Until the remaining crop finds buyers, growers say their financial difficulties will continue.
A clear schedule, transparent surplus allocations and effective monitoring of purchasing rules would help establish what companies are required to buy and what options remain available to farmers whose production exceeds their original contracts.
