TobaccoReporter logo

Category: Agriculture & Sustainability

  • Pakistan Shifting Toward Open Market Tobacco Pricing

    Pakistan Shifting Toward Open Market Tobacco Pricing

    Pakistan’s Economic Coordination Committee (ECC) directed the Ministry of National Food Security and Research to prepare a roadmap for moving away from the current practice of setting Minimum Indicative Prices (MIPs) for tobacco and transition toward open market pricing, sources told Business Recorder.

    While MIPs serve as a price floor to protect tobacco farmers—particularly when supply exceeds demand—they are not support prices and do not involve government subsidies.

    The ECC noted that shifting to market-driven pricing aligns with the broader government policy of phasing out price controls in favor of demand-and-supply dynamics. However, concerns were raised that cess (a local tax on tobacco), calculated as a percentage of MIPs, could be reduced if open market prices rise above government-set minimums.

    Despite approving revised MIPs for various tobacco types for the 2025–26 fiscal year, the ECC emphasized the need for further deliberation before dismantling the current system. The Ministry was instructed to develop a comprehensive transition plan and present it to the ECC in due course.

  • Zimbabwe Nearing Record Tobacco Target

    Zimbabwe Nearing Record Tobacco Target

    Zimbabwe is on the brink of a historic tobacco season, with over 280 million kilograms of tobacco sold to date, representing 94% of the national 300 million kg target for 2025. According to the Tobacco Industry and Marketing Board (TIMB), the sales have generated $944 million.

    TIMB spokesperson Chelesani Moyo-Tsarwe reported a strong season, highlighting the active participation of over 108,000 growers, a 4.6% increase from last year. With weeks remaining in the marketing season, Zimbabwe is poised to surpass its record.

    “The numbers speak for themselves—our farmers have shown resilience and commitment,” she said.

    Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development, Professor Obert Jiri, attributed the success to favorable weather, expanded smallholder participation, improved farming techniques, and strong institutional support, particularly through contract farming schemes.

    The average price per kilogram stands at $3.37, slightly down from 2024’s $3.47, but still delivering strong returns for farmers.

  • Zimbabwe’s Stalk Destruction Reprieve Expires

    Zimbabwe’s Stalk Destruction Reprieve Expires

    To protect next year’s tobacco crop from pests and disease, Zimbabwe’s Department of Research and Specialist Services (DR&SS) said it will be cracking down on farmers who still haven’t destroyed the stalks and roots from this year’s crop. Because of the late start to the season, the department gave farmers a three-week reprieve that ended June 5.

    “In the event of non-compliance, some fines [$100 per hectare) are imposed as per regulations,” said Dr. Dumisani Kutywayo, chief director  of the DR&SS. “A second or subsequent conviction will attract a fine not exceeding $200 for each hectare or part thereof in respect of which the offense is committed, or imprisonment for a period not exceeding two years or both fine and imprisonment.”

    The director said all growers were required to adhere to all other dates to prevent the carryover of pests and diseases, however, those who are not able to meet this stipulated deadline are requested to apply for an extension to keep their tobacco in the fields.

    Figures from Zimbabwe’s National Statistics Agency show that tobacco export earnings rose from US$1.3 billion in 2023 to US$1.43 billion last year, with 2025 expected to be even better.

  • Black Farmers Association Condemns Bill to Repeal Duty Drawback

    Black Farmers Association Condemns Bill to Repeal Duty Drawback

    Representing 130,000 members, the National Black Farmers Association (NBFA) is calling on the U.S. Senate to protect all farmers, especially those who grow American tobacco, by removing the provision to repeal the duty drawback incentive for U.S. tobacco manufacturers from the budget reconciliation bill.

    “Logic suggests that ‘making America great again’ is achieved on the backs of American farmers,” said John Boyd, Jr., founder and president of the NBFA and a fourth-generation black farmer. “Growers in North Carolina, Tennessee, South Carolina, and across our nation will be jeopardized if the duty drawback incentive does not remain in place.

    “To some, the incentive may seem minor. However, to my members and growers across America, protecting the duty drawback is of great significance. On behalf of the National Black Farmers Association, I humbly plead that legislators do not jeopardize the current American agricultural economy nor the future generations of American farmers.”

    The current House version of the legislation removes the Duty Drawback provision specifically for tobacco companies while preserving it for all other industries. Eliminating this incentive for American tobacco manufacturers would impact the farming of American tobacco crops.

    “Duty drawbacks are not loopholes—they are essential safeguards,” the NBFA wrote. “Removing them would reverse over 200 years of trade policy designed to support American exports and bolster domestic manufacturing. Drawbacks stimulate domestic manufacturing in the states and ensure that U.S. leaf tobacco remains competitive in the international marketplace. If legislators remove the drawback incentive, this would lead to a decrease in US-grown tobacco crops.”

  • Zimbabwe Tobacco Production up 21% 

    Zimbabwe Tobacco Production up 21% 

    According to Zimbabwe’s Tobacco Industry and Marketing Board (TIMB), 220.6 million kg of flue-cured tobacco has been sold for $678.3 million since the marketing season opened March 5, marking a 21% increase from the same period last year.

    The TIMB said 190.3 million kg, worth $641.5 million, had been sold by contract growers, while 10.3 million kg, valued at $36.7 million, was sold through auction floors. The highest price recorded at auction was $4.99 per kg, while contract sales peaked at $6.30 per kg.

    Chelesani Tsarwe, the public affairs officer for TIMB, the decentralization of tobacco production beyond traditional growing provinces would have a substantial impact on the nation’s output.

    “The first sale of Naturally Cured Virginia (NCV) tobacco will take place [May 22] at the Atlas Agri contract floor in Marula, Matabeleland South, and the volumes recorded in Matabeleland are expected to contribute to the national total,” she said. “Efforts are ongoing to enhance transparency and efficiency across the tobacco value chain. TIMB remains committed to ensuring the industry remains viable, inclusive, and globally competitive.”

  • Zimbabwe Posts Single-Day Tobacco Sales Record

    Zimbabwe Posts Single-Day Tobacco Sales Record

    Last Friday (May 9), Zimbabwe set a single-day sales record with 7.2 million kg coming off the auction floor, according to the Tobacco Industry and Marketing Board (TIMB). That day also saw a season-high price of $6.20 per kg, significantly better than last year’s best of $5.76.

     “This unprecedented volume reflects the significant progress made by farmers, most of whom have now completed curing and grading,” TIMB said.

    Despite strong sales, around 40% of the crop remains unsold, with many companies still holding substantial volumes, TIMB said. China continues to be the leading importer of Zimbabwean tobacco leaf this year, accounting for 38.8% of total exports since sales began in March.

  • Pakistan Insists No New Taxes on Tobacco Farmers 

    Pakistan Insists No New Taxes on Tobacco Farmers 

    Pakistan’s Federal Law Minister, Azam Nazeer Tarar, said the government is committed to the promotion of agriculture and to providing all necessary facilities to farmers, and that no new regulations or taxes have been imposed on the tobacco crop or landowners in Khyber Pakhtunkhwa Province.

    Speaking in the National Assembly on Friday in response to concerns raised by Syed Waseem and Asad Qaiser regarding the tax on tobacco crop, the minister informed the House that under the leadership of Prime Minister Muhammad Shehbaz Sharif, the government believes in the development of agriculture and in supporting farmers.

    He said that two major multinational tobacco companies pay Rs 250 billion ($900 million) in taxes annually and hold a 44% market share, while local companies hold a 56% share but contribute only slightly more than 3% in taxes.

    Azam said that industries earning profits have a responsibility to contribute their fair share to the national treasury, and that government oversight begins when the crop moves into the processing phase. He said there are some proposals regarding raw tobacco and assured that the government is aware of the challenges faced by farmers.

  • Malawi Leaf Hits New High 

    Malawi Leaf Hits New High 

    Nyasa Tobacco Company (NTC), Malawi’s leading tobacco buyer, made headlines this week by purchasing tobacco at $3.30 per kilogram on the auction floors, the highest so far this season. Fleetwood Haiya, Director of Nyasa Tobacco, praised farmers for consistently delivering high-quality leaf since the marketing season opened in April.

     “This $3.30 is not just a number, it’s a recognition of the sweat, dedication, and hard work that our farmers invest in producing quality tobacco,” said Haiya. “As a proudly local company, we believe in rewarding excellence, and today’s pricing is a direct result of that belief.”

    Haiya emphasized that this price was not from contract farming, but achieved on the open auction floor, making it a true milestone in farmer empowerment and transparent pricing. He also urged farmers to maintain good grading practices, stressing that proper grading significantly enhances the value of their product. “Grading is key. When the leaf is well-graded, we’re more than willing to pay top dollar,” he said. “We want to ensure that every kilogram reflects a fair return on the farmer’s effort.”

  • Brazil Projected to Crack $3B in Tobacco Exports

    Brazil Projected to Crack $3B in Tobacco Exports

    According to yesterday’s projection by consulting firm Deloitte, Brazil’s tobacco exports are expected to surpass the $3 billion mark in 2025. The forecast anticipates an increase of 10% to 15% in volume and value. In February, the projection was $2.977 billion.

    According to data from the Ministry of Development, Industry, Trade and Services, Brazil shipped 104,000 tons of tobacco in the first quarter of 2025. The volume was 1.78% lower compared to the same period in 2024, however, the value of sales rose by 12.85%, reaching $744 million. The main buyers of Brazilian tobacco in the first quarter were China, Belgium, Indonesia, the United States, and the United Arab Emirates.

    In 2024, Brazil exported 455,000 tons of tobacco to 113 countries, generating around $2.9 billion in revenue. This figure exceeded the historical average of the past decade, which stood at $2 billion. Brazil has been the world’s largest tobacco exporter for over 30 years. About 90% of its production is destined for international markets. In terms of overall production, Brazil ranks second only to China.

    “The preference of international customers for Brazilian tobacco is a direct result of the product’s quality and integrity, guaranteed by the Integrated Tobacco Production System,” said Valmor Thesing, president of the Interstate Tobacco Industry Union.

  • Malawi Confiscates 170 “Nested” Tobacco Bales

    Malawi Confiscates 170 “Nested” Tobacco Bales

    Malawi’s Tobacco Commission (TC) confiscated at least 170 nested tobacco bales in the three weeks of sales. Nesting is the concealment of stems, scraps, loose leaves, or any object within a bale to deceive a buyer on quality or quantity.

    “Out of 170 bales, 140 have been confiscated at Lilongwe Floors, 25 at Chinkhoma, and two at Limbe Floors,” TC public relations officer Telephorus Chigwenembe said.  

    Chigwenembe said the confiscated bales have been sent to grading companies for rehandling. Proceeds from the sale of the rehandled bales will be forfeited to the Commission, whereas in years past, the TC split the money with the tobacco owners.