SWABI: Tobacco growers have been left vulnerable to financial exploitation following delays in quota allocations, which have resulted in overproduction and a subsequent price crash. According to growers and industry leaders, this situation has caused a loss of over Rs6.56 billion, leaving many farmers unable to recover their production costs.

The government is required to announce tobacco quotas by October each year, allowing growers to plan their production accordingly. However, the quota for the current fiscal year was not announced until December and was lower than the previous year. This delay has led to an oversupply of tobacco, with prices dropping sharply. Leading industry figures argue that this not only harms growers but also benefits tobacco companies.

Ayaz Khan, a former member of the Pakistan Tobacco Board (PTB), criticised the government for declaring flue-cured Virginia (FCV) tobacco surplus, causing significant losses to farmers. “The growers have suffered a loss of Rs6.56bn, while companies are expected to make profits from the same amount,” Khan said in an exclusive........

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