Tobacco growers across major producing districts of Khyber Pakhtunkhwa are facing a deepening procurement crisis, with farmers alleging that delayed purchases, offers as low as Rs400 per kilogram and uncertainty over the Minimum Indicative Price (MIP) have left them struggling to sell their harvested crop.
The growers say the situation has intensified despite procurement agreements reportedly reached with local tobacco companies and buyers. According to farmers, several local purchasers have yet to begin procurement on the expected scale, leaving harvested stocks accumulating while production costs, debts and other financial obligations continue to mount.
The crisis has placed the Pakistan Tobacco Board (PTB) under growing scrutiny, with farmers accusing the regulatory body of failing to ensure effective implementation of procurement rules and protect growers from practices that could weaken their bargaining position. The most serious concern for growers is the reported gap between the price they expect and what some buyers are allegedly offering.
Farmers claim that certain local purchasers and dealers are offering around Rs400 per kilogram, while the expected minimum level is reportedly close to Rs720 per kilogram. The difference of roughly Rs320 per kilogram has placed severe financial pressure on growers, many of whom fear they may be forced into distress sales simply to recover part of their investment and meet immediate financial obligations.
The situation has become more complicated following enforcement action reportedly taken by the PTB against some local purchasing companies and dealers. While regulatory measures are aimed at ensuring compliance with procurement rules, farmers say disruptions to established purchasing channels could leave them with even fewer options for selling their produce. Growers fear that if formal procurement channels remain disrupted, more tobacco could move through informal or back-channel transactions, increasing farmers’ dependence on middlemen and dealers and further weakening their negotiating position.
The uncertainty is also spreading across the wider tobacco industry. According to farmers and industry representatives, apart from two major multinational companies, most local companies and purchasers have yet to commence procurement at the scale expected during the current season.
This also raised concerns over the fate of surplus tobacco and whether the existing procurement network has enough capacity to absorb the crop produced by growers. The growing stocks have left farmers questioning who will ultimately purchase the tobacco that remains unsold if local procurement does not resume at the required pace.
Adding to the uncertainty is the reported lack of clarity surrounding the Minimum Indicative Price for the current season. For tobacco growers, the MIP is not simply an official figure but a key element of the pricing framework that is expected to provide some protection against extremely low offers. Farmers argue that without a clearly communicated and effectively enforced price mechanism, they remain vulnerable to market practices that could push tobacco prices significantly below the level expected under the regulatory system.
The growers’ concerns also extend beyond the price offered by individual buyers. They want authorities to ensure that companies entering into procurement agreements fulfil their commitments and that tobacco is purchased through a transparent, fair and enforceable mechanism. Farmers argue that the real test of the regulatory framework is not whether rules exist on paper, but whether those rules protect growers when they actually bring their crop to market after investing heavily in cultivation, harvesting and preparation.
The situation is also creating uncertainty for legitimate businesses operating within the formal tobacco sector. Industry representatives warn that inconsistent procurement and weak or uneven enforcement could distort competition, encourage informal trading and disadvantage companies that continue to operate within the established regulatory framework. Such uncertainty could have wider consequences for the tobacco supply chain, affecting growers, dealers, purchasing companies and other industry stakeholders.
Farmers and industry representatives are now calling on the PTB and other relevant authorities to intervene immediately. They are demanding clarity over the Minimum Indicative Price, the resumption of procurement by companies that have committed to purchasing tobacco, a practical mechanism for handling surplus production and stronger enforcement against alleged purchases below the prescribed or expected price. They also want procurement agreements to be implemented effectively so that farmers are not left with unsold stocks after making substantial investments in their crops.
The developing crisis has exposed what farmers describe as a growing gap between regulatory policy and its implementation on the ground. For tobacco growers, an official announcement is no longer enough; they want a procurement system that actually functions, protects the value of their produce and ensures that purchasing commitments are honoured. With harvested tobacco stocks continuing to accumulate and financial pressure increasing, the spotlight is now firmly on the Pakistan Tobacco Board and other relevant authorities. Unless procurement resumes, pricing uncertainty is resolved and a workable mechanism is established to absorb surplus production, farmers fear the situation could deteriorate further, deepening their losses and creating greater instability across Khyber Pakhtunkhwa’s tobacco industry.
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