SWABI, Feb 1: An increase in the price of tobacco is likely to be announced at today’s (Friday) meeting being held at the Pakistan Tobacco Board, sources told Dawn on Thursday.

Growers and dealers have warned tobacco buyers that in case of companies’ failure to meet their demand, they would run a campaign for stopping tobacco cultivation.

Respective associations have already held meetings with the growers.

According to tobacco marketing laws – MLO-487 – current year’s price should be increased from the previous year’s, said the sources adding, but there is no clause which could determine the prices in proportion to the increase in the prices of essential commodities, pesticides and fertilisers.

“If companies made just one paisa increase in the prices they fulfilled the condition of tobacco marketing law but that doesn’t meet the demands of growers who are in financial constrains”, said an official of a buyer company. “Real producers have been ignored by the companies and the vital of crops eaten by buyers.”

Growers said, prices of all essential commodities and pesticides have increased manifold but the companies have made a nominal increase in the prices of tobacco to justify non-violation of tobacco marketing law.

“For upcoming season a nominal increase is not acceptable to growers and their associations,” said the general secretary of Anjuman-i-Kashthkaran NWFP, Ismail Jan Khan.

“The boggy of surplus tobacco raised during previous few years was totally incorrect.”

Each year the companies, he said, create such situation where they can purchase tobacco from growers at lower rates.

The sources said that about 45 companies which announced their requirement quota for 2007 in November 2006, have sent “cost production” estimates to the PTB.

“We are sending it to the PTB each year and it is up to the PTB to determine the prices for the June to August tobacco purchasing season”, said an official.

Both growers and buyers said, the Friday meeting is very important as it will clear price trends for the upcoming season and cultivation of tobacco.