The Socio-Economic Dynamics of Tobacco Cultivation on Rural Livelihoods: A Case Study of Mardan District, Khyber Pakhtunkhwa, Pakistan

Abstract

This study investigates the socio-economic dynamics of tobacco cultivation and its impact on rural livelihoods in Mardan District, Khyber Pakhtunkhwa, Pakistan. Based on a quantitative method approach, with 300 farming households, the research reveals a paradoxical system of short-term credit access leading to long-term entrapment. A structured questionnaire was employed to collect data on socio-demographics, financial practices, and perceived environmental impacts. Whereas, the data was analyzed using SPSS software for the descriptive and inferential statistics. Findings indicate an overwhelming reliance on contract farming (92%) and advance credit (87.3%), which initiates a debilitating cycle of debt, with 64.7% of farmers carrying over debt from previous seasons and 71.3% requiring additional loans for household sustenance. Crucially, the primary reason for cultivation was not profit but "Access to Credit/Inputs" (67%). The study further demonstrates significant environmental degradation, with a strong correlation (χ² = 95.42, p < 0.001) between farming experience and severe soil fertility decline. Most tellingly, correlation analysis reveals a significant negative relationship between years in tobacco farming and livelihood satisfaction (r = -0.421), substantiating the concept of a "tobacco poverty trap." The study concludes that tobacco farming, while providing immediate liquidity, systematically undermines economic resilience, ecological sustainability, and human well-being, necessitating urgent policy interventions for crop diversification and regulatory reform of contract farming practices.