The federal government has approved a minimum indicative price of Rs. 525 per kilogram for Pakistan’s 2026 tobacco crop, providing a benchmark for farmers and tobacco buyers.
According to sources cited by ProPakistani, the decision establishes the minimum price for the upcoming crop. The move is significant for tobacco growers, particularly those in Khyber Pakhtunkhwa, which produces a major share of the country’s tobacco.
Khyber Pakhtunkhwa Leads Tobacco Production
Khyber Pakhtunkhwa remains Pakistan’s primary tobacco-producing region, especially for flue-cured Virginia tobacco, which manufacturers mainly use in cigarette production.
The province’s major tobacco-growing districts include Swabi, Mardan, Charsadda, Buner, and Mansehra. Moreover, the Pakistan Tobacco Board estimates that the sector supports nearly 80,000 tobacco farmers nationwide, including more than 45,000 in Khyber Pakhtunkhwa.
Tobacco cultivation also takes place in Punjab and other provinces. Farmers grow different varieties to serve various markets, including cigarette manufacturing and products such as naswar, snuff, and hookah tobacco.
Tobacco Board Oversees Pricing And Purchases
The Pakistan Tobacco Board plays a central role in regulating the tobacco sector. Its responsibilities include setting minimum indicative prices, conducting production cost surveys, preparing market forecasts, and overseeing purchasing arrangements between growers and tobacco companies.
Consequently, the newly approved price provides an important reference point for transactions involving the 2026 crop. However, the announcement does not specify how the new rate will affect individual farmers’ earnings or the final prices offered by tobacco companies.
The sector remains an important source of agricultural income, particularly in tobacco-producing districts of Khyber Pakhtunkhwa. Therefore, the minimum price will be closely watched by growers and industry stakeholders as they prepare for the upcoming purchasing season.
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