MARDAN – Pakistan Tobacco Company (PTC) has called on the Pakistan Tobacco Board (PTB) to urgently announce its policy regarding surplus tobacco, stressing that delays are causing uncertainty and anxiety among farmers.
Speaking at a press briefing at the Mardan Press Club, PTC representatives reiterated the company’s commitment to supporting growers, ensuring transparency in the procurement process, and curbing illicit trade in the sector.
PTC officials explained that the company is purchasing tobacco strictly in line with its declared demand and at officially notified prices, as mandated under the PTB Ordinance of 1968. Each year, procurement quotas are allocated by the PTB under Martial Law Order (MLO) 487, based on manufacturers’ declared requirements.
This year, the total demand of all companies stands at 81.5 million kilograms, with PTC’s share at 25 percent. However, production is expected to surpass 100 million kilograms, creating a surplus. In such cases, PTB distributes the excess proportionally among manufacturers to safeguard farmers’ interests, requiring companies to purchase surplus stock at or above the Minimum Indicative Price (MIP).
Highlighting its farmer-focused initiatives, PTC noted that it has direct contracts with over 10,000 growers and provides technical support through nearly 150 agricultural experts from seed sowing to harvest. Recently, the company also extended financial assistance of more than Rs. 1 billion to tobacco growers in the region.
However, PTC expressed concern over exploitative practices by some companies, which are allegedly purchasing tobacco at rates up to Rs. 200 per kilogram below the notified price. Moreover, while PTC ensures timely payments within 30 days, other firms reportedly delay payments for three to six months, causing severe financial strain. In some cases, smaller buyers disappear altogether, leaving farmers unpaid.
PTC urged the PTB to intervene promptly, protect farmers from unfair buyers, and announce a clear policy on surplus tobacco to ensure growers receive fair value for their produce.
