Tobacco farmers across major growing districts of Khyber Pakhtunkhwa are facing mounting financial pressure as delayed procurement, alleged below-price buying and uncertainty over the Minimum Indicative Price (MIP) push the tobacco market deeper into crisis.
Growers say they are struggling to sell their harvested crop despite having entered into agreements with local tobacco companies and purchasers. Several local buyers, they claim, have yet to begin procurement, leaving farmers with unsold stocks while their production costs and financial liabilities continue to rise.
The situation has put the Pakistan Tobacco Board (PTB) under growing scrutiny, with farmers accusing the regulatory body of failing to enforce procurement rules effectively and protect growers from practices that undermine their bargaining position.
Some local purchasers and dealers are offering around Rs400 per kilogram, far below the reported minimum price of approximately Rs720 per kilogram. The sharp price disparity is forcing financially strained growers to consider distress sales simply to recover part of their investment and meet immediate expenses.
The problem has been compounded by PTB enforcement action against some local purchasing companies and dealers. With formal procurement channels disrupted, growers fear they are increasingly being pushed towards informal or back-channel transactions, where they have little negotiating power and are more exposed to exploitation by middlemen and dealers.
The crisis is also creating uncertainty across the wider tobacco industry. Apart from the two major multinational companies, most local companies and purchasers have yet to begin procurement on the scale expected during the season. This has raised concerns over the fate of surplus tobacco and the ability of the existing procurement system to absorb the crop produced by farmers.
Adding to the uncertainty is the lack of clarity surrounding the Minimum Indicative Price for the current season. Without a clear and effectively enforced price framework, growers are left vulnerable to market practices that can drive prices well below the level they expect under the regulatory system.
For farmers, however, the issue goes beyond the price offered by individual buyers. The real concern is whether the regulatory framework is capable of ensuring that companies entering into procurement agreements fulfil their commitments and that tobacco is purchased through a transparent and enforceable system.
The situation is equally concerning for legitimate businesses operating within the formal tobacco sector. Inconsistent procurement and weak enforcement can distort competition, encourage informal trading and disadvantage companies that operate within the regulatory framework.
Farmers and industry representatives are now calling for immediate intervention by the PTB and other relevant authorities. They want clarity on the MIP, the resumption of procurement by companies that have committed to buying tobacco, a workable mechanism for handling surplus production and stronger action against alleged purchases below the prescribed price.
The crisis has exposed a growing gap between regulatory policy and its implementation on the ground. For tobacco growers, the priority is no longer simply an official announcement; they want a procurement system that works in practice, protects the value of their crop and ensures that legally binding commitments are honoured.
With harvested tobacco stocks accumulating and farmers under increasing financial strain, the pressure is now on the PTB to restore confidence in the procurement process. Failure to address the situation promptly could deepen losses for growers and further destabilise an industry already struggling with uncertainty.
