Khyber Pakhtunkhwa tobacco farmers are seriously concerned with exploitation by tobacco companies alleging of unfair practice in grading and setting of prices on tobacco despite the government fixed prices.
Farmers claim tobacco companies are purchasing crops through agents at rates lower than the official price. Procurement started with reduced demand announcements made just 15 days before buying began, while the Pakistan Tobacco Board was legally bound to declare rates and demand in October.
Muhammad Ali Dagi, provincial organiser of the Pakhtunkhwa Farmers Jirga, stated that climate change and untimely rainfall damaged crops, affecting production. He said companies are bypassing direct procurement and using agents who offer low rates, causing financial losses to growers.
According to official rates for 2025:
- Buner: Rs 903/kg
- Mansehra: Rs 952/kg
- Mardan, Charsadda, Swabi: Rs 743/kg
Farmer Sareer shared that cultivation costs on one jerib of land total around Rs 920,000, requiring at least Rs 920/kg to break even. However, market rates remain below official prices due to grading issues and limited company interest.
Pakistan Tobacco Board spokesperson Owais Afridi confirmed grading problems at the start of the harvest season, especially with top and bottom leaves. He claimed that this sector gives the highest returns to farmers but still receives maximum complaints.
Data from previous years:
- 2020: Quota 85.5M kg, Output 71.4M kg
- 2021: Quota 83M kg, Output 68M kg
- 2022: Quota 77.3M kg, Output 64M kg
- 2023: Quota 77.3M kg, Output 85M kg
- 2024: Quota 74.8M kg, Output 85M kg
- 2025 (Projected): Quota 74.8M kg, Expected Output 95M kg (initial estimate 125M kg)
Former Speaker Asad Qaiser said the total sector value ranges from Rs 480B to Rs 500B with Khyber Pakhtunkhwa producing 110M kg annually. About 70,000 families depend on this sector. He added that the tobacco board’s delay in announcing rates is due to lack of leadership.
He stated that companies operating outside KP, especially those shifted to Kashmir, are setting their own rates, reducing procurement from KP farmers.
Company sources allege political influence behind farmer protests, claiming that some local agents linked to politicians are using growers for personal benefit.
Tobacco companies are reported to already have large stockpiles, reducing current procurement demand and putting additional economic pressure on farmers in 2025.
