ECC sets tobacco crop price at Rs240/kg

ISLAMABAD: Economic Coordination Committee of the Cabinet on Monday gave approval to the Minimum Indicative Price (MIP) of tobacco at Rs240/kg for this year’s crop.

The ECC set the price after reaching a sweet spot between the recommendations put forward by Ministry of National Food Security and Research (MNFS&R) and Abdul Razak Dawood, Prime Minister’s Adviser on Commerce and Investment.

However, Ministry of Industries’ representative did not participate in two internal meetings, as per the official summary. In order to comply with the decisions of the ECC, two consecutive meetings were held to determine and notify MIP of tobacco.

Syed Fakhar Imam, Minister for National Food Security & Research had endorsed the MIP at Rs260/kg for Flu Cured Virginia (FCV), whereas, commerce adviser had suggested it be fixed at Rs225/kg.

However, the ECC, after detailed deliberation, set the price at Rs240/kg. Shaukat Tarin, Federal Minister for Finance and Revenue, virtually presided over the meeting to discuss the tobacco price.

Syed Fakhar Imam, Federal Minister for National Food Security and Research, Federal Secretaries and senior officers attended the meeting. Ministry of National Food Security & Research submitted proposals for MIP of tobacco.

The ECC considered and approved MIPs of various types of tobaccos for year 2022 for further submission to the Cabinet for its approval/ratification, according to an official statement.

The approved prices are as follows:

The prices of Flu Cured Virginia’s Plain Area and Sub-Mountainous Area varieties were set at Rs240/kg and Rs281.13/kg respectively, while Dark Air Cured Tobacco price was fixed at Rs149.09/kg.

The ECC approved at price of Rs187.50/kg for White Patta tobacco, Rs187.50/kg for Burley, while the price of Naswar/Snuff/Hookah and other Rustica tobacco and its products was set at Rs123/kg.