Tobacco Asia

54 tobaccoasia LEAF NEWS 烟叶新闻 Pakistan: KP Seeks Larger Tobacco Revenue Share Khyber Pakhtunkhwa (KP) governor, Faisal Karim Kundi, has called for a fairer share of tobacco-related revenue for KP, arguing that the province does not receive adequate financial returns despite producing the largest share of tobacco in Pakistan. Kundi raised the issue during a meeting at the Governor's House with Fakharuddin Khan, secretary of the Pakistan Tobacco Board (PTB) who briefed him on PTB activities, including projects, institutional capacity, tobacco cultivation, exports, and revenue generation. "Though the province produces the largest share of tobacco in the country, it is not receiving its due financial benefits from the industry's profits and taxes," Kundi said. Officials at the meeting said farmers cultivate tobacco in several districts of KP, including Swabi, Mardan, Charsadda, Malakand, Mansehra, and Buner. They added that tobacco cultivation across Pakistan covers 21.25 million hectares and generates annual income of about PKR320 billion.* The sector also provides livelihoods for roughly 1.2 million people. Officials further told the governor that tobacco cultiva- tion, sales, and exports generated PKR483 billion in revenue for the federal government during the 2024–25 fiscal year through federal excise duty and sales tax.Kundi described the tobacco industry as highly important for the province's economy and commercial activity. He said authorities should direct a greater share of the taxes and profits generated by the sector toward development in KP. He also urged relevant agencies to take steps that protect farmers' interests, strengthen transparency in the industry, and introduce modern agricultural practices. According to the governor, such measures would help local growers benefit more from the sector while supporting Pakistan's broader economic growth. *US$1.00=PKR280 India: Karnataka Tobacco Prices Slide Tobacco farmers in the Old Mysuru region in Karnataka say falling market prices have pushed many growers into financial distress despite strong crop quality this season. Growers reported that the average price for good-quality tobacco has dropped to INR294* per kg, down from about INR315– INR320 per kg. Premium-grade tobacco currently sells for about INR314 per kg, while lower-grade tobacco fetches around INR200 per kg, with an average price of INR254 per kg. Farmers say the decline represents a drop of nearly INR100 per kg compared with last year's prices. Ramegowda, general secretary of the Karnataka Rajya Raitha Sangha, said he sold high-quality flue-cured virginia tobacco for INR380 per kg during the previous season. "This year, initially we were paid INR310 per kg, which came down to INR280," he said. Ramegowda, who has cultivated tobacco for 3 decades, said growers produced one of the best crops in recent memory. "This year's tobacco quality is the best in the last 5 decades. Unfortunately, prices are falling. Andhra farmers got up to INR450 per kg. But Karnataka's farmers are paying a price even though we are producing high quality tobacco," he added. Former Tobacco Board member Vikram Gowda linked the price drop to higher taxes on tobacco products and reduced procurement by major buyers who expect lower demand. He also said excess production in neighboring Andhra Pradesh has added pressure on prices. According to Gowda, growers in that state produced more than 100 metric tons above their quota, which has affected the market in Karnataka. In contrast, Karnataka growers have stayed within the state's quota of 100 metric tons, with annual production ranging between 80 and 90 metric tons. *US$1.00=INR93 Low Tobacco CSR Sparks Concern Media Network on Tobacco (MNT) raised concerns about what it described as consistently low levels of corporate social responsibility among Malawi's tobacco buying companies, urging the firms to take concrete steps to support farmers and nearby communities. MNT president Alfred Chauwa voiced the concerns during a meeting with journalists. He also warned about a growing trend among some farmers who sell their tobacco before the official market opens. Chauwa criticized the practice, saying it harms farmers and weakens the tobacco value chain. He said early sales often force growers to accept extremely low prices, sometimes as little as MWK4,000 (US$2.33) per kg. "Instead of selling tobacco as early as February, farmers should consider diversifying into other crops, especially early-maturing varieties that can provide quick income. This is in line with the Tobacco Industry Act passed by Parliament in 2019, which strongly emphasizes diversifica- tion," said Chauwa. He cautioned that farmers already face economic pressure and warned that early selling could worsen their financial situation and create wider losses for the tobacco sector. Chauwa also pointed to the increasing impact of climate change on agriculture and encouraged farmers to take part in tree-planting efforts to restore ecosystems and protect the environment. "As a country facing climate shocks, we must take environmental conservation seriously. Tree planting is critical if we are to safeguard the future of farming," he said. In addition, Chauwa expressed concern about declining tobacco quality in several areas visited by MNT. He said farmers in those regions produced substandard leaf, which directly affects prices at auction floors. "Quality has a direct impact on pricing. It is worrying that many farmers are not meeting expected standards. We urge them to focus on best farming practices to improve quality," he added. Chauwa also called on the government to deploy more agricultural extension workers to assist farmers with technical guidance and modern farming methods. He said stronger support would help improve productivity, leaf quality, and the long-term sustainability of the tobacco industry. Karnataka growers produced one of the highest-quality tobacco crops in decades, but falling prices are dampening returns. Credit: Juantortola, Pixabay.

• Cover