Multinationals begin buying surplus tobacco

Multinational tobacco buyers began purchasing surplus leaf from growers this week, with Pakistan Tobacco Company (PTC) starting on Wednesday, Dawn reported. The buying follows an agreement reached at a Pakistan Tobacco Board meeting to take 47 million kilograms of surplus tobacco from farmers. Philip Morris International began purchases on Tuesday, while PTC followed a day later.

Growers’ representatives say Pakistani companies have not yet started buying, despite the planned allocation, and have called for next year’s company quotas and written grower agreements. They also want payments routed through banks and a tobacco exhibition held in producing areas. The reported minimum indicative prices range from Rs262.60 per kg for white Patta and other types to Rs615.90 per kg for flu-cured Virginia grown in mountainous areas. Grower leaders estimate that late purchases could add Rs8 billion to losses, on top of Rs6.5 billion attributed to low prices.