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8 pc raise in tobacco prices proposed

ISLAMABAD: The Ministry of Commerce has proposed an increase of 8 percent in the prices of all kinds of tobacco varieties for the fresh crop.

Official sources said here on Saturday that Ministry of Commerce has finalised this proposal and circulated it among the ministries of agriculture, industries and production, and finance for their comments before it is submitted before the Economic Coordination Committee (ECC) for final approval.

Sources said the commerce ministry has pointed out that the federal government fixes the minimum prices of various grades of tobacco under section 8 (I) of the Pakistan Tobacco Board (PTB) Ordinance, 1968 in order to ensure the disposal of tobacco at reasonable prices in the local market.

Sources said tobacco price is revised by the PTB every year taking into account the increase in the cost of the production of various varieties. The cost of the production is calculated by the Price and Grade Revision Committee, consisting of the representatives of the tobacco growers, tobacco industry, industries division, Agriculture Price Commission etc.

Officials said the cost of the production of different types of tobacco varieties has registered following increase since 1997: Flue cured 3 percent, Virginia 11 percent, white patta 13 percent, Der air cured 3 percent and Burely 12 percent.

The commerce ministry said taking into account weighted average price paid by the tobacco companies, global trends of increase allowed in the support price of other crops and the wholesale price index of raw materials, the Price and Grade Revision Committee has recommended an increase of 8 percent across the board for all types of tobacco for the fresh crop over the price notified by the government for 1998 crop.

The commerce ministry said the committee has recommended following new prices of each tobacco variety for the year 2000.

Flue Cured Virginia (Rs/kg)

Pak-1 Rs 42.64, Pak-2 Rs 41.02, Pak-3 Rs 37.92, Pak-4 Rs 35.80, Pak-5 Rs 26.07, Pak-6 30.32, Pak-7 Rs 34.12, Pak-8 Rs 26.54, Pak-9 Rs 24.65, Pak-10 Rs 20.85, Pak-11 Rs 23.72, Pak-12 Rs 18.18.

Niootiana Rustioa

WP-1 Rs 20.19, WP-2 Rs 17.24, WP-3 Rs 13.94, WP-4 Rs 11.51, WP-5 Rs 8.72.

Der-Air Cured

DAC-1 Rs 11.83, DAC-2 Rs 11.76, DAC-3 Rs 12.53, DAC-4 Rs 12.24, DAC-5 Rs 11.85, DAC-6 Rs 11.76, DAC-7 Rs 11.76,

Burely

BY-1 Rs 25.02, BY-2 Rs 27.1, BY-3 Rs 33.35, BY-4 Rs 31.30, BY-5 Rs 20.85, BY-6 Rs 25.02. Fortuna