In an attempt to pacify the protesting growers the government has fixed the minimum price of Rs 121 per kg for the tobacco crop for the current year but there are still concerns whether it will pacify the farmers who are demanding fixing it at Rs 200 per kg. A notification of the Pakistan Tobacco Board (PTB) said it has revised not only the prices of tobacco but also the grade as well. The decision was made after a meeting of the cost of production committee. The Agriculture Prices Institute of the Ministry of National Food Security had estimated cost of production of tobacco at Rs183 per kg for the current year.
It was based upon the cost of agriculture inputs. However, the Ministry of Commerce and PTB opposed the estimate, even though API estimates are accepted as benchmark for fixing support price of other major crops. PTB had a meeting with two leading cigarette manufacturers and other stakeholders including Tobacco Dealers Association and all the members of the Board, including the tobacco growers.
