The prices, okayed by the ECC, are indicative and do not entail any financial obligation on the part of the federal government.
By Staff Reporter
ISLAMABAD: The government has fixed minimum indicative price of different tobacco varieties for crop for 2023 as the price of Flue Cured Virginia (FCV) is fixed at PKR 325 per kg in plain areas and PKR 366 per kg for sub-mountainous areas.
The price of Dark Air Cured Tobacco (DAC) has been fixed at PKR 205 per kg, of White Patta (WP) at PKR 161 per kg, of Burley at PKR 238 per kg, of naswar/snuff/hookh and other Rustica tobacco and its products at PKR 161 per kg, and of Sun Cured Virginia at PKR 215 per kg for the 2023 crop.
According to the details, Pakistan Tobacco Board (PTB) has been established under Pakistan Tobacco Board Ordinance, 1968 (I of 1968) mainly to regulate, control and promote the export of tobacco, tobacco products, undertake research in tobacco and develop new tobacco growing areas.
As per Section 8(1) of Pakistan Tobacco Board Ordinance 1968, the Minimum Indicative Prices (MIPs) for different grades of various types of tobacco are to be notified by the Federal Government.
The MIPs are recommended by the Prices & Grade Revision Committee of the Board on the basis of Cost of Production (CoP) determined by the CoP Committee(s) under PTB Bye-Law No. 11(5).
Two committees (one for Khyber Pakhtunkhwa and one for Punjab) for determination of cost of production (CoP) were constituted in pursuance of PTB Bye-Law No. 11(6). The CoP committee of the Punjab finalised CoP of DAC tobacco while no consensus developed among the committee members of CoP Committee of Khyber Pakhtunkhwa on a common figure for CoP 2022.
The CoP Committee of Khyber Pakhtunkhwa, in its meeting held on October 24, 2022, unanimously decided that calculations by all stakeholders be presented before the Committee.
Subsequently, the Prices and Grade Revision Committee (PGR) finalised CoP and recommended the Minimum Indicative Prices for various types of tobacco for different areas in its meetings held on November 10, 2022.
The competent forum of the ECC granted approval for minimum indicative price of tobacco crops for 2023. However, the approved MIP do not entail any financial obligations on the part of the federal government.
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