Tobacco Farmers Expect Guaranteed Price
Tobacco farmers proceed to expect for implementation of new support price for their crop on the basis of recent survey led these days in tobacco growing regions of Khyber Pakhtunkhwa, while the purchasing enterprises declare that the issue was settled in November 2011 by Pakistan Tobacco Board (PTB).
The tobacco crop acquisition season is planned to start at the beginning of July. Representatives of national and multinational enterprises said at the press conference that leaders of tobacco growers were spreading rumors about new prices. However a spokesman said that a research was led “to examine complains and worries regarding setting prices of tobacco by Pakistan Tobacco Board (PTB).”
The letter called “approximate floor price for tobacco crop 2012” states that the survey found out that the real price of production of tobacco crop is Rs159.5 per kilogram; the guaranteed price of tobacco depending on the cost of production is advised at Rs183.4 per kg after adding inflation of about 13% and profit margin of 2%.” According to the regulations, the Commerce Ministry has to declare the tobacco price.
The research underlines that the guaranteed price at Rs183.3 per kg while the PTB has recently set it at Rs117 per kg, which demonstrates a significant inequality.
The given letter makes it evident that the findings of the survey are adequate and based on scientific proofs. “The food security ministry had finished its work and already the commerce ministry is required to set the price for the coming purchasing season,” Liaquat Yusufzai, representative for the Kashthkar Coordination Council, said in an interview.
“In case the ministry won’t be able to introduce new prices then we will prompt tobacco growers from various areas in Khyber Pakhtunkhwa to keep away from tobacco purchasing agencies of both national and international companies,” he said. Mr. Yusufzai also added that they had filed a written petition in Peshawar High Court and it was required that before termination of tobacco price the date for launching acquisition should not be declared.
From the other side, the companies’ representatives declared that the ministry had not yet talked over the new tobacco price with them.