K-P farmers not to cultivate tobacco next year
Differences over calculation of production cost deepen.
PESHAWAR:
As the tussle among tobacco farmers in Khyber-Pakhtunkhwa, multinational tobacco companies and Pakistan Tobacco Board (PTB) over the cost of production intensifies, the farmers have decided not to grow tobacco next year.
Talking to The Express Tribune, National Agriculture Council Islamabad Director General Dr Sharif said his team conducted research to determine the actual cost of production when farmers were preparing nurseries of tobacco in February this year. In this exercise, his team interviewed 1,100 farmers in Charsadda, Mardan, Swabi and Mansehra districts where 98% of the tobacco was cultivated.
“Our research covered expenses from fuel to food and wages for labourers,” he said. Data collected during the research revealed that the cost of production for every farmer in K-P should be Rs183.40 per kg for 2012 and should be increased in accordance with inflation rate. In comparison, the PTB has set tobacco price at Rs117 per kg.
Haji Rustam Khan Baffa, a tobacco grower and Chairman of Kashtkar Committee, told The Express Tribune around 78,000 people in K-P were directly associated with the tobacco business and it was the only cash crop in the province.
Considering the rate of inflation, he said, the cost of production was calculated at a lower level. In 2011, the tobacco price was set at Rs105 per kg, but after a strike by the farmers it was increased to Rs117 per kg.
“First, multinational companies told the farmers that they would purchase the crop, but later refused by saying that this year they had bought enough. This forced the farmers to sell at lower prices,” he said.
PTB Secretary Asif Khan said he along with officials of various farmer associations held several meetings during this season to discuss the issue.
He pointed out that tobacco was the only crop which was protected under the law. According to MLO 487, the PTB will calculate the cost of production and the cost should be increased by 5% every year.
“Last year, the price was Rs110 while this year it is Rs117,” he said, adding the research conducted by Dr Sharif was not for Dark Air Cured Tobacco, but for the finest flue-cured Virginia, which needs modern machinery. “We have to take care of all the stakeholders,” Khan said.
Ittehad Kashtkar Union Chairman Liaqat Ali said in 2010-11 the tobacco growers in K-P earned Rs110 billion, of which Rs72 billion was given to the federal government in taxes.
Ali asked if cotton and wheat crops under the 18th Amendment were handed over to the provinces – Sindh and Punjab – why not tobacco was given to K-P. “About 98% of tobacco is grown in K-P and 78% of the total Virginia tobacco is grown in Swabi.”
He pointed out that many farmers had decided to grow any other crop from next year. “Farmers have decided not to grow tobacco in 2013 to force the government to take their input while deciding the production cost,” Ali said.
A senior official of PMP, who asked not to be named, said his company policy was clear. “We follow government rates at the start of the season and want farmers to grow better quality of Virginia to get better prices,” he said.
When approached, PTC coordinator refused to comment.
Published in The Express Tribune, December 17th, 2012.
As the tussle among tobacco farmers in Khyber-Pakhtunkhwa, multinational tobacco companies and Pakistan Tobacco Board (PTB) over the cost of production intensifies, the farmers have decided not to grow tobacco next year.
Talking to The Express Tribune, National Agriculture Council Islamabad Director General Dr Sharif said his team conducted research to determine the actual cost of production when farmers were preparing nurseries of tobacco in February this year. In this exercise, his team interviewed 1,100 farmers in Charsadda, Mardan, Swabi and Mansehra districts where 98% of the tobacco was cultivated.
“Our research covered expenses from fuel to food and wages for labourers,” he said. Data collected during the research revealed that the cost of production for every farmer in K-P should be Rs183.40 per kg for 2012 and should be increased in accordance with inflation rate. In comparison, the PTB has set tobacco price at Rs117 per kg.
Haji Rustam Khan Baffa, a tobacco grower and Chairman of Kashtkar Committee, told The Express Tribune around 78,000 people in K-P were directly associated with the tobacco business and it was the only cash crop in the province.
Considering the rate of inflation, he said, the cost of production was calculated at a lower level. In 2011, the tobacco price was set at Rs105 per kg, but after a strike by the farmers it was increased to Rs117 per kg.
“First, multinational companies told the farmers that they would purchase the crop, but later refused by saying that this year they had bought enough. This forced the farmers to sell at lower prices,” he said.
PTB Secretary Asif Khan said he along with officials of various farmer associations held several meetings during this season to discuss the issue.
He pointed out that tobacco was the only crop which was protected under the law. According to MLO 487, the PTB will calculate the cost of production and the cost should be increased by 5% every year.
“Last year, the price was Rs110 while this year it is Rs117,” he said, adding the research conducted by Dr Sharif was not for Dark Air Cured Tobacco, but for the finest flue-cured Virginia, which needs modern machinery. “We have to take care of all the stakeholders,” Khan said.
Ittehad Kashtkar Union Chairman Liaqat Ali said in 2010-11 the tobacco growers in K-P earned Rs110 billion, of which Rs72 billion was given to the federal government in taxes.
Ali asked if cotton and wheat crops under the 18th Amendment were handed over to the provinces – Sindh and Punjab – why not tobacco was given to K-P. “About 98% of tobacco is grown in K-P and 78% of the total Virginia tobacco is grown in Swabi.”
He pointed out that many farmers had decided to grow any other crop from next year. “Farmers have decided not to grow tobacco in 2013 to force the government to take their input while deciding the production cost,” Ali said.
A senior official of PMP, who asked not to be named, said his company policy was clear. “We follow government rates at the start of the season and want farmers to grow better quality of Virginia to get better prices,” he said.
When approached, PTC coordinator refused to comment.
Published in The Express Tribune, December 17th, 2012.