Director Leaf, Pakistan Tobacco Company (PTC), Asif Khan has said that presently Pakistan has no nicotine standard for cigarette manufacturing companies.
Talking to a group of journalists after presentation on company, he however said that International Standard Organisation (ISO) in collaboration with World Health Organisation was working over the matter. The company, he said would welcome any such kind of standardisation to minimise the ratio of nicotine in the cigarettes.
Regarding violation of the MLO 487, a provincial government law regarding purchase and payment of price to the growers, he attributed the responsibility of the implementation of the law towards Pakistan Tobacco Board (PTB). However, regarding the role of the company, he said they are strictly abiding the law.
When asked about the problem of surplus tobacco faced by growers, he said that it was surfaced from 1999 to 2003 due to the low sale of the tobacco products. During, the period, Asif Khan said that the company was going in loss, but since then no such problem had been surfaced during last three years.
He said that the demand of tobacco products was going high every year, saying a review of period of since 2002 showed 40 to 50 percent increase in the tobacco growing. "The trend is an ample proof of the profitability of the growers," said Mr Khan. However, he said the company was interested in increasing net profit of the growers as compared to gross level profit, which caused raise in the Ijara agreements between growers and landowners.
The PTC official said that tobacco is costly crop and the company is making efforts for minimising the cost incurred by the growers. In this connection, he also mentioned the prevailing stability in the prices of fertiliser in the market and welcomed the announcement of subsidy on the purchase of subsidy for the growers by the government.
He said that wood is another extra-expenditure of the growers on the crop saying to cut their expenses the company is diverting them towards coal. But, they are reluctant to divert to the coal, he added.
Regarding alleged irregularities in gradation of the tobacco leaf, he said it was the responsibility of vigilance committee comprised of the representatives of growers, Pakistan Tobacco Board and buyers. The decision of the committee is final in this regard, as the company has no role to play in it. Earlier, Asim Imdad, Manager Regulatory Affairs, Pakistan Tobacco Company gave a detailed presentation on the affairs of the company.
In his presentation, Asim Imdad said that the company is paying multiple taxes to the government of Pakistan. The share of the company in the excise duty of the country is 38 per cent of the total revenue of the country. He said that 53 other competitors of the company used to pay only 2 per cent of the total excise duty.
Each cigarette manufactured by the company he said has taxed by 63 per cent of the total price. He said that the company during financial year 2003-04 has exported tobacco worth $7.2 billion.
He also highlighted the welfare activities initiated by the company in the tobacco growing areas of the district. In this connection, he stressed need for the establishment of schools, computer literacy centres and holding of free eye and medical camps in different parts of the province.