20000316

CMAP to honour

agreements

with growers

of tobacco

ISLAMABAD: Members of Cigarette Manufacturing Association of Pakistan (CMAP), have agreed to honour the agreements they signed with the tobacco growers under the provincial laws, however, they made it clear that they are not bound to purchase tobacco produced without agreement.

As the year 1999 registered a record high production of tobacco crop, the tobacco companies procured higher than their actual requirements and are presently holding tobacco stock inventories at a very high level, says a press release issued here on Wednesday.

The current year's demand for Flue Cured Virginia (FCV) is 48,000 metric ton, about 20 to 24 percent less than the last year's demand that was 70,000 metric ton. It means that about 22,000 metric ton FCV would be surplus this year. Furthermore, the two successive price increases of cigarettes in 1999 and slow economic activities in the country have resulted in depressed sales and thus lowered the tobacco requirements of domestic market.

The tobacco marketing in the Frontier province is regulated through provincial laws under which tobacco companies indicate their annual demand to Pakistan Tobacco Board well before sowing of tobacco, it further said.

Though the industry's requirements for crop 2000 have widely been published amongst tobacco growers through workshops and print media by the industry as well as Pakistan Tobacco Board, yet it has been observed that large number of growers without having valid agreements with tobacco companies intend to cultivate tobacco intend to cultivate tobacco. "Such growers are advised in their own interest, not to cultivate tobacco and instead adopt cultivation of alternate crops like sugarcane, sunflower and spring maize, which are also cash crops," it further said.

The export of tobacco is being pursued vigorously and there has been an increase of 113 percent in 1998 and 6 percent in 1999. Further efforts are afoot in conjunction with Pakistan Tobacco Board and Export Promotion Bureau, it concluded.ÑPPI