Tag: subsidies

  • Tanzanian President Pledges to Strengthen Tobacco Sector in Re-Election Campaign

    Tanzanian President Pledges to Strengthen Tobacco Sector in Re-Election Campaign

    Campaigning in Tabora Region on September 11, Tanzanian President Dr. Samia Suluhu Hassan vowed to strengthen the country’s tobacco sector if reelected, promising expanded subsidies, improved access to farm inputs, and reliable international markets. She cited recent gains, with Urambo District’s tobacco output doubling from 11,208 tons in 2022 to 20,492 tons in 2025, generating $50 million in earnings in the 2024/25 financial year. Samia highlighted government efforts to attract buyers, raise farmer incomes, and secure long-term growth in what she called the region’s main cash crop.

    Addressing concerns from growers, she pledged to resolve delayed payments by some purchasing companies and reiterated that subsidies on fertilizers and inputs will continue under her administration. While pushing for even greater output, she also urged farmers to adopt modern, sustainable curing methods, warning against tree cutting for tobacco drying. Samia framed tobacco as both a national economic driver and a livelihood lifeline for rural communities, positioning her re-election bid as key to unlocking “even more profitable markets” for Tanzanian farmers.

  • 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.