Ministry to devise tobacco deregulation system

The Economic Coordination Committee has asked the Ministry of National Food Security and Research to prepare a plan within three months for ending federal involvement in setting tobacco prices, The Express Tribune reported. The committee also approved keeping the previous year's minimum indicative prices and cess rates for the 2026 tobacco crop.

The ministry had proposed retaining 2025 rates in light of economic conditions and growers' interests, while the ECC sought a workable approach to deregulating the price mechanism. For Flue-Cured Virginia tobacco, the 2026 indicative price was set at Rs523 per kg using 5.43% inflation; applying the later 9.26% rate would have produced Rs541.14 per kg. The FBR chairman also called for consideration of exportable surplus, citing high production and low domestic consumption.