Tobacco farmers facing financial uncertainty

Business Recorder reported that growers across the country are under mounting financial strain, with the Minimum Indicative Price for the 2026 crop still unannounced. The delay has coincided with reports of distress sales and payment problems during the current buying season. Farmers who grew more tobacco than companies require are reportedly forced to accept prices well under official benchmarks.

Under Section 2(i)(3) of Martial Law Order No. 487, companies are obliged to show the Weighted Average Price and the Minimum Indicative Price that the Pakistan Tobacco Board announces before buying starts. Only the WAP has been made public so far, while the MIP for this crop is still pending. According to the Economic Coordination Committee's press release, a PTB proposal on the MIP was presented after months of delay but deferred at the 7 September 2026 meeting, with officials asked to resubmit it with more thorough analysis.

The PTB has also warned 57 tobacco companies to complete their stipulated purchases within the prescribed timeframe or face strict action, including possible blacklisting. Growers say the lack of official pricing has let certain purchasers and traders buy below anticipated market rates.