NA body urged to visit tobacco-growing areas

Business Recorder

4 days ago

ISLAMABAD: The tobacco growers' association on Friday urged a parliamentary panel to form a sub-committee on a war footing basis to visit tobacco-growing areas in Khyber Pakhtunkhwa, to personally observe the ongoing exploitation of growers by tobacco companies and to hear the grievances of farmers.
A member of the tobacco growers' association, Muhammad Ayaz Tajabad, urged the National Assembly's Standing Committee on Food Security, which met here with MNA Syed Tariq Hussain in the chair, to constitute a sub-committee to visit tobacco purchasing centres in Swabi, Mardan, Charsadda, and other areas to observe the mistreatment meted out to farmers by the tobacco companies.
He said this when the committee proceeded with a point of order raised by Asad Qaiser, MNA and former speaker of the National Assembly, concerning the challenges faced by tobacco growers and the urgent need for a comprehensive policy framework to address their issues.
The farmers representative said that the farmers who have already suffered heavy losses due to damage caused by rains and hailstorms to their crops should not be left at the mercy of the industry, and their grievances should be heard.
'Tobacco companies have continued exploiting farmers under the guise of downgrading,' he said, adding that tobacco remains one of Pakistan's largest tax-contributing sectors.
He said that unfair pricing practices and grading irregularities by tobacco companies have badly affected farmers, adding this practice is benefiting middlemen and pushing farmers into losses, particularly after a season of weather-related crop damage.
He claimed that companies are purchasing tobacco below official rates, which is again a major issue for the tobacco growers and needs to address without any further delays and excuses.
He also presented a video to the committee, showing farmers standing in long queues under the open sky during rain late at night, waiting for their turn to sell their crops.
The Pakistan Tobacco Board (PTB) secretary briefed the committee on actions taken in response to previous recommendations, including the formation of oversight bodies for CESS regulation, corporate social responsibility (CSR) initiatives, and development programmes.
However, lawmakers expressed concern over the absence of grower representation on these committees and the lack of progress on key reforms. The PTB also reported that around Rs949 million allocated for research and development remains unused due to the vacant post of director at the board.
The committee directed the Ministry of National Food Security and Research (MNFS&R) to expedite the appointment process for all vacant PTB posts to enable implementation of pending development and reform initiatives.
In addition, the Federal Board of Revenue (FBR) was asked to provide a detailed report on GST and Federal Excise Duty (FED) collections on tobacco and cigarettes over the past five years.
The FBR officials informed the committee that GST would now also be applied to imported cotton, with the new policy taking effect from August 15, 2025. A relevant statutory regulatory order (SRO) would be issued soon, they said. The move aims to create parity between imported and local cotton, helping to stabilise prices and support domestic producers.
The committee also decided to take up the issue of rising sugar prices in its next session, stressing the need for a market investigation and measures to provide consumer relief.
MNAs Rana Muhammad Hayat Khan, Nadeem Abbas, Waseem Qadir, Musarrat Asif Khawaja, Zulfiqar Ali Behan, Muhammad Ameer Sultan, Nazir Ahmed Bhugio, Syed Abrar Ali Shah, Usman Ali, Abdul Qadir Khan, Syed Ayaz Ali Shah Sheerazi, and senior of MNFS&R also attended the meeting.
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