Muhammad Ameen, Chairman of Fair Trade in Tobacco (FTT), has urged authorities and the Pakistan Tobacco Board (PTB) to protect thousands of tobacco farmers struggling amid crisis conditions. Many farmers, primarily smallholders, face severe economic challenges due to unfair pricing and delayed payments. These issues pose a threat to Pakistan’s agricultural economy and rural livelihoods.
Pricing and Payment Challenges
During a press briefing in Islamabad, Ameen highlighted the plight of farmers who are compelled to sell their crops at Rs. 200 below the legally mandated weighted average price. This pricing discrepancy endangers the livelihoods of smallholder farmers, who form the backbone of Pakistan’s tobacco industry.
The situation is further exacerbated by delayed payments and unmet quotas, which violate the 1968 PTB Ordinance and disrupt the tobacco supply chain. Such challenges create obstacles for rural economic growth.
Systemic Agricultural Issues
The struggle faced by tobacco farmers arises from several systemic issues within Pakistan’s agricultural sector:
- Pricing undercut by Rs. 200 per unit below legally mandated rates
- Delayed payments causing cash flow issues for smallholders
- Failure to meet purchase quotas in accordance with PTB regulations
- Inadequate enforcement of fair trade provisions
Economic and Export Growth Implications
Ameen called for the enforcement of fair purchase quotas and the timely payment by local companies. He emphasized that protecting farmers is vital for sustaining Pakistan’s agricultural economy and supporting rural communities.
The crisis coincides with promising growth in tobacco exports. Supporting farmers is essential for economic stability. Ensuring fair treatment for tobacco growers will enhance Pakistan’s global market position and encourage long-term industry growth.
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