Tobacco is a crop with myriad aspects. Not only does it involve scientific treatment, but requires special attention by the producers during the growth, curing and marketing stages. This crop possesses considerable economic significance and its impact on the fiscal and monetary policies of the major producing, exporting/importing countries is quite pronounced. In Pakistan, although tobacco cultivation occupies a relatively small area of 0.27% of the total irrigated land in the country, it is of great economic value as a source of revenue, employment and foreign exchange earnings to the country.
During 2003-2004, over Rs 23 billion were contributed to the Federal Exchequer as Central Excise Duty and Sales Tax. Being a highly labour-intensive crop, about eighty thousand persons are involved in its cultivation, fifty thousand are engaged in 26 factories of the Tobacco Industry and another one million find indirect employment. It is also an important source of foreign exchange earnings for the country (US $13.226 million during 2003-2004). Had the production of tobacco crop not been developed by the Pakistan Tobacco Board on scientific lines, the country would have been importing raw material worth Rs 7 billion per annum (2003-2004).
Prior to 1968, the tobacco was cultivated in Pakistan, but its importance in the agriculture sector was insignificant due to inferior quality, low yield and inadequate return. The tobacco industry was then dependent on imported raw material on which a huge amount of foreign exchange was spent every year. In 1968, the Government of Pakistan decided to promote the cultivation, manufacture and export of tobacco and tobacco products on an organised basis. The Pakistan Tobacco Board was established in 1968 for the promotion of the cultivation, manufacture and export of tobacco and tobacco products and for matters, ancillary thereto.
One of the prime functions of the Board is to undertake research connected with tobacco. In order to implement its intensive programme of research and development in the field of tobacco production and curing, four Research Stations, two each in the Provinces of NWFP and Punjab are working, besides four Model Farms and a mini tobacco research station in NWFP and Punjab and Balochistan.
The R&D programme is aimed at (i) improvement of yield; (ii) improvement of quality and (iii) to reduce the cost of production. To disseminate improved technology for obtaining higher yields and enhancing the quality attributes of various types of tobacco a small, but well organised extension service has been established.
ACHIEVEMENTS OF PAKISTAN TOBACCO BOARD
A- RESEARCH AND DEVELOPMENT:
(i) Introduction of improved tobacco production technology in nursery raising, field crop, harvesting, curing and grading of tobacco.
(ii) Screening and release of high yielding/disease resistant varieties.
(iii) Introduction of plastic covers to protect seedbeds, reducing seedbed period by one and a half month.
This practice today has been widely adopted by vegetable farmers in the entire area of NWFP for growing winter vegetables with tremendous advantage in catching the early market.
(iv) Introduction of deep ploughing and ridge making by tractor.
(v) Use of balanced NPK fertiliser.
(vi) Improved pest control programme.
(vii) Topping/desuckering of tobacco and introduction of chemical suckericides for suckers control.
(viii) Improvement in flue-curing barn structure, furnace design and harvesting and curing technology.
B- GENERAL:
(i) Yield per hectare of cigarette-type tobacco increased from 916 kg (1967-68) to 2380 kg (2003), registering an increase of 160%.
(ii) Employment opportunities increased by 100% from 1968 to 2003.
(iii) The country is saving Rs 7 billion per annum through import substitution of tobacco.
(iv) An amount of nearly Rs 2.8l1 billion was paid by the tobacco companies to the growers of tobacco during 2003-2004.
(v) Export of tobacco and its manufactures amounting to Rs 49.3 million in 1971-72 increased to Rs 767.1 million (US $13.226 million) in 2003-2004. (In 2002-2003 exports were worth US $6.248 million).
(vi) Central Excise Duty (1970-71) increased from Rs 0.386 million to over Rs 23.8 billion in 2003-2004.
(vii) The area under cigarette-type tobaccos reduced by 28.05% whereas production increased by 86.91% mainly due to enhanced yield, thus releasing agriculture land for cultivation of other crops.
(viii) An integrated marketing system has been evolved and introduced, eliminating mal-practices and exploitation of tobacco growers.
(ix) In order to vouchsafe the timely payment to tobacco growers, 'Deferred Payment Leaf Voucher Scheme' has been introduced under the aegis of defunct Pakistan Banking Council/Nationalised Commercial Banks.
(x) Through special measures huge quantities of surplus tobacco were disposed off and the tobacco growers were saved from financial disaster.
C. QUALITY IMPROVEMENT:
(i) Pakistani tobacco especially Flue-cured Virginia compares favourably with the best filler type tobacco in the world. This is shown by the fact that Pakistan exports on the average 3 million kgs of tobacco each year and the exports are increasing.
(ii) Due to climatic conditions, semi-flavoured and flavoured tobaccos are not produced in Pakistan as these require humid and mild climate.
(iii) Semi-flavoured tobacco is being grown in Mansehra district which meet the needs of the local industry. Efforts can be made by the Provincial Agriculture Department to increase the acreage of such crop for export purposes. However, there are limiting factors such as availability of land, water and competition of other cash crops.
(iv) Experiments on autumn tobacco crop are being planned by the Pakistan Tobacco Board.
(v) Re-vitalisation of Research & Development in PTB occupies an important part of the reform process being undertaken in the Pakistan Tobacco Board.
D- AVERAGE PRODUCTION OF CIGARETTE TYPE TOBACCO (DURING LAST 5 YEARS)
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Type of Tobacco Production (M.Kg)
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i) Flue-cured Virginia. 55.13
ii) Dark Air-cured Virginia. 2.56
iii) White Pata (Semi-Oriental) 15.21
iv) Burley (Light air-cured Virginia) 0.59
Total: 73.49
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POTENTIAL FOR PRODUCTION
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Type of Tobacco Production (M .Kg)
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i) Flue-cured Virginia. 80.00
ii) Dark Air-cured Virginia. 7.50
iii) White Patta (Semi-oriental) 23.00
iv) Burley (Light air-cured Virginia) 2.00
Total: 112.50
Production (M .Kg)
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F- POTENTIAL FOR EXPORT: The average production of cigarette-type tobaccos in Pakistan, over the last five years, has been 73.5 million kg whereas the growers have the potential to produce 112.50 million kg. Domestic requirements for Flue-cured virginia tobacco (the main type exported) per annum is about 45-50 million kgs, while the country has the potential to produce 80 million kgs or even more.
Thus 30 to 35 million kg could be made available for exports, provided markets are explored for exports.
RE-JUVENATING THE PAKISTAN TOBACCO BOARD: The Board's most pressing issues today are balancing supply and demand, ensuring fair prices and tapping export markets. With a view to rejuvenating the PTB in order that it may play a dynamic role for the promotion of export of tobacco, the Federal Government in the Ministry of Commerce has prepared an Action Plan for PTB Reforms.
THE MAIN AREAS OF THE ACTION PLAN FOR REFORMS ARE:
i) Administrative.
ii) Developmental.
iii) Research & Development and Marketing.
iv) Legal.
v) Marketing.
i) Administrative Reforms
a) Reconstitution of the Board of Directors. Reducing the unwieldy large size of 27 members to 13.
B) MISSION STATEMENT: The PTB is dedicated to the promotion and development of tobacco production and exports through improved R&D agronomic practices, training and marketing with a view to improving the life of growers and contribute to the economic development of the community.
C)RATIONALIZATION/PROFESSIONALIZATION OF THE ADMINISTRATION
II) RESEARCH AND DEVELOPMENT:
a) Preparation of the Action Plan for the R&D in consultation with PARC, Agr. Universities, manufacturers, growers, research and marketing specialists (i) focusing on varieties for export and value addition (Barns/curing) (ii) upgrading PTB R&D capabilities (iii).
Inducting professional expertise in R&D (iv) Dovetailing R&D in the private and public sectors.
b) Action Plan for Autumn Crop.
c) Extending International Grading System of Tobacco (previous system based on colour; Int. system based on ripeness and maturity).
d)Rationalisation/Professionalisation of administration.
III) LEGAL:
a) Examination of provisions of Provincial law regarding weighted Average Price by the Committee of all the stakeholders to ensure the protection of interests both of growers as well as industry.
b) Removal from the PTB Ordinance provisions regarding the annual fixation of export allotment and its distribution, license for export etc.
c) Introduction of a Quality Certification System.
IV) EXPORT PROMOTION:
a) Establishment of an Export Cell in the PTB staffed by professionals.
b) Establishment of 2 Bulk Curing Barns.
c) Promoting growers to export.
d) Participation in International Exhibitions.
e) Providing common facilities, etc like modern curing facilities, modern-redrying facilities to small growers for exports.
f) Providing training to growers and dealers in exports.
g) International publicity, printing brochures, etc.
h) Creating a website to provide information to international markets on the Internet.
i) Survey outside markets.
j) Bringing all growers on one common platform/one association.
k) Sending growers/dealers abroad to explore markets.
l) Activating our embassies and trade offices abroad to promote tobacco exports and other points.
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