Tobacco farmers suffer loss worth Rs. 4400 million due to floods and under pricing of their crop in Charsadda KPK

Virginia flue-cured tobacco is the main cash crop of small farmers of district Swabi, Mardan, Charsadda, Malakand, Buner and Mansehra, producing between 65 to 75 million kg of world-class tobacco for the last 60 years. Federal Govt is the main beneficiary of this crop because it is annually getting Rs. 42-45 billion as central excise duty which forms 70% of the price of cigarettes, while the tobacco board is getting in the shape of cess more than Rs. 40 million and the provincial government more than Rs. 150 million. Appr. 10% of production is exported, which earns valuable foreign exchange for the country. The main multinational purchasers of tobacco in Pakistani market is Philip Morris of USA under the name of Lakson Tobacco Co., and British-American Tobacco (BAT) under the name of Pakistan Tobacco Co. In addition to this, about a dozen of small companies purchase about 6% of the overall production.
The cultivation of tobacco, once exceeding 85 million kg, over the years has decreased and presently it is the main stray of small farmers due to two reasons:
1. Shrinking of profit margin i.e. low prices offered by purchasing companies.
2. High labor requirement for the crop. It is not worthwhile for the farmers to grow tobacco, which actually requires labor of several family members, while those family members may earn higher wages working at the construction sites in Islamabad, Lahore or Karachi.