SWABI: Tobacco purchasing companies have slashed their demand for the 2026 crop by 13.183 million kg, marking the fourth consecutive year of reduced requirements. This cutback is expected to result in significant financial losses for local tobacco farmers, sources told Dawn on Saturday.
Tobacco experts noted that while multinational and national firms have the capacity to store large quantities of tobacco, growers face major challenges due to limited financial resources and storage options. The inability to store crops like Virginia and White Patta tobacco means any surplus must be sold quickly, leaving growers at the mercy of fluctuating market demand.
For 2026, the total demand from tobacco companies is set at 61.627m kg, with 58.184m kg of flue-cured Virginia (FCV) tobacco, 0.360m kg of dark air-cured tobacco, 1.342m kg of White Patta, 1.381m kg of burley, and 0.360m kg of sun-cured tobacco.
This marks a significant reduction from previous years, with companies cutting their demand by 23.873m kg over the past four years. In 2023, total demand was 85.5m kg, which fell to 77.322m kg in 2024, 74.810m kg in 2025, and will drop to 61.627m kg in 2026.
The bulk of tobacco purchases is made by multinational companies, with a smaller portion allocated to national companies and smaller tobacco entrepreneurs. Among multinational firms, Pakistan Tobacco Company (PTC) and Philip Morris (Pakistan) Ltd are the largest buyers, with a combined demand of over 36m kg of FCV tobacco in 2026. The remaining FCV demand will be met by 78 national companies, including Khyber Tobacco.
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