Pakistan’s Tobacco Farmers Face Pressure to Sell Crops at Lower Prices
Tobacco growers in Pakistan are facing pressure to sell their crops below official price benchmarks, as surplus leaf and procurement problems leave some farmers with limited options.
Farmers and growers’ representatives have reported low offers, rejected tobacco bundles and delays in payments. The complaints are especially significant in Khyber Pakhtunkhwa, Pakistan’s main growing region for flue-cured Virginia tobacco.
Surplus crop and limited buyers
The Pakistan Tobacco Board (PTB) publishes buyer requirements and oversees price-setting and procurement arrangements. But the amount companies plan to buy does not necessarily cover all the tobacco produced.
Dawn reported that companies’ requirements for the 2026 crop totalled about 61.6 million kilograms, while national output was estimated at around 140 million kilograms. The difference leaves a large quantity without a declared buyer, increasing the risk that growers will have to negotiate from a weaker position.
In August, growers told Dawn that some traders and small cigarette manufacturers were offering around Rs350 per kilogram, while the reported minimum support price for flue-cured Virginia tobacco was Rs740 per kilogram. Those figures describe reported offers and prices at that time; individual rates can depend on tobacco type, grade and purchasing arrangements.
Price approval does not guarantee a sale
The Economic Coordination Committee approved minimum indicative prices for the 2026 tobacco crop on October 8, according to an official government press release. The press release did not publish the price schedule itself.
ProPakistani separately reported that the government had approved a price of Rs525 per kilogram for the 2026 crop. Because the official announcement available publicly does not state that figure, it should be treated as a reported price pending confirmation from the notified schedule.
The PTB says its role includes price fixation, market forecasts and vigilance committees that check grading and whether purchasers pay below notified minimum rates. However, farmers’ complaints reported in the press indicate that rules and price benchmarks do not necessarily resolve practical problems such as unsold surplus, rejected bundles or payment delays.
Growers seek stronger procurement oversight
The dispute has prompted farmers’ groups to call for stronger enforcement and more reliable purchasing arrangements. In September, Business Recorder reported that the PTB had warned 57 tobacco companies to complete their stipulated purchases within the prescribed period, with possible action for non-compliance.
For growers, the immediate concern is whether buyers will purchase their crop at a fair rate and pay on time. The wider issue is how the market handles tobacco produced beyond declared company requirements.
Until procurement commitments and price enforcement translate into dependable sales, farmers may continue to face pressure to accept lower offers for crops they have already grown and cured.