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Category: Agriculture & Sustainability

  • Pakistani Court Strikes Down Local Tobacco Excise Duty

    Pakistani Court Strikes Down Local Tobacco Excise Duty

    Pakistan’s Peshawar High Court declared the Khyber Pakhtunkhwa government’s provincial excise duty on unmanufactured tobacco unconstitutional. The bench ruled in favor of multiple petitions filed by leading tobacco companies, including Pakistan Tobacco Company, stating that the relevant provisions of the KP Finance Act, 2024 conflicted with the Constitution.

    The petitioners challenged the Rs50 ($0.18) per kilogram levy on unmanufactured tobacco, arguing that excise duties fall exclusively under federal jurisdiction under the Federal Legislative List, and that the provincial assembly had no authority to impose a parallel duty. Lawyers for the petitioners emphasized that federal excise duty (FED) on tobacco is already administered by the Federal Board of Revenue under the Federal Excise Act, 2005, and the KP law encroached on parliamentary powers.

    The court sided with the petitioners, agreeing that following the Eighteenth Amendment, the omission of the concurrent legislative list gave parliament exclusive power over matters such as excise duties, making the provincial tobacco levy ultra vires.

  • Philippine Tobacco Growers Call for Stronger Action Against Smuggling

    Philippine Tobacco Growers Call for Stronger Action Against Smuggling

    The Philippine Tobacco Growers Association (PTGA) urged its government to step up enforcement against illegal cigarette trade, warning that smuggling is siphoning income from farmers and threatening one of the country’s key agricultural sectors. PTGA President Saturnino Distor said each illegal product sold in the market represents lost revenue for hardworking Filipino tobacco farmers, totaling P1 billion ($17 million)—or P17,000 ($289) for each of the organization’s 59,000 members.

    Industry data indicates illegal cigarettes sell for as low as P2 ($0.03) per stick, compared to P7 ($0.12) for legal products, fueling black-market growth and increasing accessibility to minors. This year, around 11.8 billion sticks of illegal cigarettes are expected to be sold in the Philippines, representing roughly 9.4 million kilos of tobacco that could have been sourced from local farms. At an average farmgate price of P104.09 ($1.77) per kilo, farmers have already lost P978.4 million ($16.6 million) in income.

    Distor also highlighted the broader impact on the industry, affecting transport workers, factory employees, and small retailers, while the government loses an estimated P40 billion ($680 million) in excise tax revenue annually. Despite the 2024 Anti-Agricultural Economic Sabotage Law, enforcement remains weak. “Farmers are not asking for special treatment,” Distor said. “We are asking for protection, for fairness, and for a chance to keep farming and feeding our families.”

  • Malawi: Agricultural Center Opens to Help Tobacco Farmers Diversify

    Malawi: Agricultural Center Opens to Help Tobacco Farmers Diversify

    Lilongwe University of Agriculture and Natural Resources in Malawi announced the opening of its new Global Action Agricultural Transformation Centre, designed to help smallholder farmers transition from tobacco cultivation to “more sustainable and profitable crops” like soybeans, groundnuts, and sunflowers. The facility was a gift from Global Action to End Smoking.

    Because Malawi is heavily dependent on tobacco, with the crop representing a significant portion of Malawi’s gross domestic product and roughly half of the country’s exports, farmers are particularly exposed to the negative impact of decreasing demand for tobacco as global smoking rates continue to drop, as well as the impact of volatile weather. Global Action estimates that 800,000 Malawian farmers have begun diversifying crops as a layer of insurance.  

    “Reducing demand for tobacco without supporting farmers would result in serious economic consequences,” said Dr. Candida Nakhumwa, vice president and country director for Global Action in Malawi. “That’s why Global Action’s approach includes agricultural transformation as a critical part of the global public health response.”

  • Pakistan Tobacco Farmers in Crisis as PTB Surplus Order Flouted

    Pakistan Tobacco Farmers in Crisis as PTB Surplus Order Flouted

    Tobacco farmers in Khyber Pakhtunkhwa and Punjab are struggling as local companies fail to comply with the Pakistan Tobacco Board’s (PTB) September directive to purchase 40 million kilograms of surplus crop, according to Business Reporter. While some major firms have met their obligations, most local companies have delayed or refused purchases, leaving thousands of farmers with unsold tobacco and mounting financial losses, the article said.

    Farmers report that companies are buying tobacco below the Minimum Indicative Price and failing to honor payment terms, forcing growers to sell at throwaway prices to middlemen. In Swabi, for example, flue-cured Virginia tobacco remains in storage with no buyers in sight.

    Experts warn that issuing surplus orders without a monitoring framework or penalties has left farmers exposed. Compliant companies face liquidity and storage constraints, while non-compliant firms distort market dynamics. Industry analysts suggest that a second surplus order may be considered, but without stricter oversight, its impact could be limited.

    The crisis comes amid broader challenges for Pakistan’s legal tobacco industry, including falling domestic demand and economic pressures. Farmers emphasize that tobacco is a family livelihood, and the government’s lack of enforcement risks eroding trust in regulatory safeguards.

  • Malawian Tobacco Farmers Advised to Adhere to Quotas Next Season

    Malawian Tobacco Farmers Advised to Adhere to Quotas Next Season

    Tama Farmers Trust advised Malawian tobacco farmers to strictly follow Tobacco Commission (TC) quotas in the 2025/26 growing season to prevent overproduction and prolonging the selling process, which would potentially disrupt next season. The 2024/25 season, which opened in April, will close on October 24, making it one of the longest in recent years.

    Initial projections estimated Malawi would produce 174.4 million kg of tobacco this year, but because of favorable weather conditions was able to sell 214 million kg for $532 million, up from last year’s $396 million.

    Trust president Abiel Kalima Banda praised TC for ensuring that all produced tobacco was sold, with remaining volumes being purchased through the Smallholder Farmers Fertiliser Revolving Fund of Malawi to guarantee full sales.

  • Tanzania Gives Tobacco Buyers Three Weeks to Pay Farmers

    Tanzania Gives Tobacco Buyers Three Weeks to Pay Farmers

    Tanzania’s Agriculture Minister Hussein Mohamed Bashe ordered all tobacco-buying companies to settle more than $5 million in overdue payments to farmers by October 20. He further instructed companies to include interest as compensation for delayed payments and to submit written explanations to the police detailing the reasons for the arrears, along with payment schedules to ensure full settlement.

    “I am giving you 21 days, until the 30th of the month,” Bashe said during an Oct. 9 meeting with company executives, bankers, and buyers. “I don’t want to hear of any farmer complaining about unpaid dues. It is unacceptable that a new farming season starts while farmers are still waiting for payments from the previous one.”

    In support of the directive, Tabora Regional Commissioner Paul Chacha ordered companies still owing money to report regularly to the police “until they have paid everything,” warning that these companies “have been a constant source of trouble” for farmers.

    Bashe also called for creating a national digital farmer registry, jointly managed by tobacco buyers, banks, and the government, to record data on farm size, crop type, and output for greater transparency.

  • War Devastates Lebanon’s Historic Tobacco Heartland

    War Devastates Lebanon’s Historic Tobacco Heartland

    Tobacco farming, a cornerstone of southern Lebanese life for over a century, is facing its most severe crisis following last year’s Israeli attacks. Production has plunged 64%, from 5 million kg to 1.8 million kg, leaving thousands of farmers unable to access lands now under Israeli control or contaminated by unexploded ordnance, according to Engineer Abdul Mawla al-Mawla, director of Lebanon’s Tobacco Administration, the Régie.

    In Aytaroun, the south’s largest tobacco hub, only 840 of 1,700 families returned to cultivate. “How can I plant while [Israeli] planes fly over my head daily?” Fatima Awada, whose family lost access to 2.5 acres under Israeli control, asked. Others have rented land elsewhere, but rising costs, damaged equipment, and toxic contamination have drastically reduced profits. The Régie increased the state-guaranteed purchase price for 2025 to between $8.50 and $10 per kilogram to help farmers cope, and also provided in-kind support such as pesticides, gloves, and school grants.

    Hassan Faqih, president of the Tobacco Unions Federation, called for greater government support and inclusion of farmers in Lebanon’s National Social Security Fund, noting that agriculture is “the first guarantee for people to remain on their land away from displacement.”

  • Philippines Government Sets New Floor Price

    Philippines Government Sets New Floor Price

    The Philippines government will set a new tobacco floor price, effective next season, according to PhilStar.

    The National Tobacco Administration’s (NTA) 2025 Tripartite Consultative Conference began this week, where the regulatory body consults with farmers, traders, and cigarette manufacturers to agree on buying rates for the next two tobacco growing seasons.

    According to Belinda Sanchez, NTA administrator and CEO, the process is to ensure safeguarding of tobacco farmer welfare and that there is a well-founded recommendation for a reasonable floor price increase.

    Tobacco is the only cash crop in the Philippines with officially approved floor prices, according to the NTA.

  • Unifreight Africa Expands Fleet Ahead of 2026 Tobacco Season

    Unifreight Africa Expands Fleet Ahead of 2026 Tobacco Season

    Unifreight Africa, a leading transport and logistics company that specializes in agricultural products—especially tobacco—announced it is set to grow its cross-border fleet from Q4 2025 through Q1 2026 to meet anticipated demand during the upcoming tobacco season. The move follows Zimbabwe’s record-breaking 2025 tobacco crop of over 350 million kilograms, which generated $1.2 billion in revenue, according to the Tobacco Industry and Marketing Board (TIMB).

    Unifreight’s operational readiness, including its expanding 4PL division and partnerships with third-party operators, positions it to handle peak tobacco volumes while maintaining service continuity. The company also plans to leverage its capabilities for other sectors such as lithium, maize, and cross-border trade, ensuring diversified growth even if the tobacco season underperforms.

  • Pakistan’s Tobacco Farmers Say Delayed Quotas Spark $23M Loss

    Pakistan’s Tobacco Farmers Say Delayed Quotas Spark $23M Loss

    Tobacco growers in Pakistan claim delayed quota announcements and reduced allocations have triggered overproduction, a price crash, and losses exceeding Rs6.56 billion ($23 million). According to the Dawn, the government normally sets quotas by October, but this year’s lower quota was delayed until December, forcing farmers to sell surplus tobacco at the minimum indicative price (MIP) of Rs548 ($1.92) per kg—far below the market average of Rs720 ($2.52). Growers accuse multinational and local companies of exploiting the situation by purchasing surplus cheaply.

    According to the Dawn, industry figures warn that farmers are being squeezed between rising production costs and falling incomes, with many unable to recover expenses. According to the Tobacco Growers Association, companies have failed to meet quota commitments, while export figures tell a different story—Virginia tobacco exports jumped 129% to 48 million kilograms in 2024-25, even as domestic quotas were cut, the newspaper said. Farmers claim losses of up to Rs3 million ($10,500) per hectare under current pricing.

    The downturn threatens broader economic impacts, including reduced government revenue, falling exports, and job losses in tobacco-producing regions. Growers also point to climate-related crop damage this year, for which they have received no compensation. The National Assembly’s standing committee on tobacco is set to meet in Islamabad on September 23 to discuss possible relief measures, though farmers remain skeptical about immediate action.