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Business Recorder
7 days ago
- Business
- Business Recorder
NA body urged to visit tobacco-growing areas
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. Copyright Business Recorder, 2025
Express Tribune
7 days ago
- Business
- Express Tribune
NA panel probes sugar price, tobacco woes
PML-N-led coalition government in the Centre now has 229 members in the NA. PHOTO: APP The National Assembly Standing Committee on National Food Security on Friday underscored the importance of investigating the causes behind the sugar price hike and exploring possible measures for market stabilisation and consumer relief. The committee met here with Syed Tariq Hussain in the chair. Committee Member Zulfiqar Ali raised the issue of sugar prices and urged the chair to include it in the next meeting's agenda. He said that the industry reaped Rs300 billion in profits, while consumers suffered losses. "Farmers and consumers have suffered losses. This matter should be included in the upcoming [meeting's] agenda," Ali said. Later, the committee decided to include the sugar price issue on the agenda for its next meeting. The committee discussed the issues facing tobacco growers. The committee was informed that Federal Board of Revenue (FBR) officials had been appointed to 23 tobacco companies to monitor tobacco. The chair underscored the importance of increasing tobacco cultivation. "If we look at the region, the world has gone far ahead at the policy level," Tariq told the committee. "The world has come a long way in the use of drones and other technologies in the farming sector," he said. "We need support at the policy-making level." The committee was informed that general sales tax (GST) was imposed on cigarettes, not on tobacco. It was also informed that approximately Rs949 million allocated for research and development remains unutilised due to the vacant director position at the Pakistan Tobacco Board (PTB). The chair instructed the ministry to expedite the appointment to all vacant posts at the PTB and its related committees so that the pending development and reform initiatives could move forward without any delay. The meeting was updated on key areas, including the current tobacco taxation policy, the framework for collection and utilisation of the cess fund over the past 10 years, the PTB's corporate social responsibility (CSR) initiatives, and the potential introduction of a crop insurance scheme for tobacco growers. The committee was informed that the PTB had constituted committees to oversee cess regulation, CSR programmes, and development activities. However, the committee raised concerns over the exclusion of tobacco growers from these bodies. In response, the committee directed the ministry to ensure that representatives of tobacco growers are included in all relevant committees, stressing that meaningful reform and facilitation measures could not succeed without their direct involvement. The committee also held a detailed discussion on reports of donkey meat being sold in Islamabad, expressing serious concern over the public health risks and regulatory negligence. The ministry was instructed to take up the issue with the relevant authority and report back in the next meeting. During a presentation by CropLife Pakistan, the committee was informed that the organisation's mission was to support farmers in producing enough food to meet the needs of a growing population through access to innovative agricultural technologies. (WITH INPUT FROM APP)
Business Recorder
04-07-2025
- Business
- Business Recorder
NA panel told: Uplift budget of MoNFS&R curtailed due to fund crunch
ISLAMABAD: The National Assembly Standing Committee on National Food Security and Research was informed that development budget of the ministry had been significantly reduced from Rs24 billion to Rs4.7 billion due to fiscal constraints imposed by the federal government under its obligations to the International Monetary Fund (IMF), leading to the curtailment of various planned projects. The committee met under the chairmanship of Syed Tariq Hussain, which considered agenda item regarding the point of order raised by Asad Qaiser, MNA and former Speaker of the National Assembly, concerning the challenges faced by tobacco growers and the need for a comprehensive policy to address their concerns. It was informed that tobacco is a significant cash crop in Pakistan, cultivated over approximately 55,000 hectares with an annual production of 186,000 tons. Of this, KPK contributes significantly, with 32,936 hectares under cultivation and annual production of around 97,385 tons making it the primary contributor to Pakistan's exportable tobacco. Despite its importance, tobacco growers face financial hardship. The crop spans eight months, and the cost of cultivation on one hectare reaches approximately Rs1.9 million, while farmers report an average monthly profit of only Rs3,700. Contributing factors include delays in announcing the indicative price, lack of government procurement, poor performance of the Pakistan Tobacco Board (PTB), insufficient federal oversight, lack of research and development, and failure by the Ministry of National Food Security and Research to appoint or nominate PTB members. The Pakistan Tobacco Board informed the committee that it had conducted meetings with stakeholders and that tobacco is currently being purchased using a weighted average method. The board also claimed to address concerns regarding pricing, rejections, and related matters. However, the committee expressed concern over the PTB's lack of performance and coordination with growers. The committee issued several directives to ensure comprehensive follow-up. The Pakistan Tobacco Board, the Ministry of National Food Security and Research, the KPK Agriculture Department, and the Federal Board of Revenue (FBR) were instructed to present detailed information in the next meeting, including the current tobacco taxation policy, CESS collected over the last 10 years, utilisation details of collected CESS and the policy framework under which it was used, CSR activities undertaken, and the breakdown of CESS collected by the federal government and shared with provinces, including under which budgetary heads. The committee directed the secretary of the Ministry of National Food Security and Research to constitute the Pakistan Tobacco Board within one month and submit a report to the committee. Additionally, the secretary was instructed to convene an emergency meeting of the board to address the outstanding issues faced by tobacco growers and to provide a follow-up report within one week. The Federal Board of Revenue (FBR) is to be invited to the next meeting to present details specifically related to CESS collection. The Pakistan Agricultural Research Council (PARC) was also assigned the task of outlining its support initiatives for tobacco growers and presenting a proposal for establishing a research centre aimed at improving the quality and productivity of tobacco crops. The committee directed the Pakistan Tobacco Board, along with the relevant provincial and federal government authorities and representatives of tobacco growers, to hold a joint consultation and submit a comprehensive report addressing all unresolved issues prior to the next meeting. To further facilitate discussions on this matter, the committee granted Shehram Khan Tarakai, MNA, the status of Special Invitee for all future proceedings related to tobacco issues. The committee raised concern with the ministry over the exclusion of several schemes previously discussed and recommended by the committee, in particular the proposed Dates Research Centre at Khairpur, to be established in collaboration with Shah Abdul Latif University. In response, the secretary explained that the ministry's development budget had been significantly reduced from Rs24 billion to Rs14 billion, then to Rs7 billion, and finally to Rs4.7 billion due to fiscal constraints imposed by the federal government under its obligations to the IMF, leading to the curtailment of various planned projects. The committee reiterated its directive to the Pakistan Agricultural Research Council (PARC) to visit Khairpur along with the concerned Member and to submit a feasibility report before the Committee, so the project may be pursued through re-appropriation of funds. In relation to Agenda Item No 4, the Pro Vice-Chancellor of Muhammad Nawaz Sharif University of Agriculture, Multan briefed the committee on the university's ongoing and planned research initiatives, their impact on national food security, collaborations at both national and international levels, and the utilisation of research funds. Key innovations highlighted included the development of hybrid wheat varieties that can increase crop yield by up to 20 per cent, and self-irrigating wheat with modified leaf angles to channel water directly to the roots while minimising evaporation. Additionally, they are working on drillers expected to be commercialised within the next three years, aimed at increasing wheat productivity to 80–100 maunds per acre. Other areas of research include pulse production, digital marketing platforms for post-harvest handling and market access, fruit value addition, soil-less vegetable farming, salinity adaptation in the Southern Indus Basin, cotton and vegetable seed research, and the establishment of a National Crop Genomics and Speed Breeding Centre. The committee appreciated the university's efforts and emphasised the importance of making research outcomes accessible to farmers. It stressed that practical application of these innovations is critical to enhancing agricultural productivity and ensuring national food security. Furthermore, the committee urged the ministry to present a comprehensive 20-year agricultural development plan. Despite the research and efforts underway, major crop production has declined by 17 per cent, highlighting the urgent need for a long-term strategy that addresses the growing challenges of pollution, climate change, and sustainability in the agriculture sector. Copyright Business Recorder, 2025
