<strong>China: STMA Holds Meeting on Planning for Development of Tobacco Industry</strong>

Source from:  TobaccoChina Online 07/01/2013

The State Tobacco Monopoly Administration (STMA) – the regulator of China's tobacco industry – held in Beijing on June 14 the 2013 meeting on planning for the development of the tobacco industry, to map out major tasks and targets for fulfillment by the tobacco industry over a future period of time.

The major tasks unveiled at the meeting are to implement in an in-depth way the spirits of the latest national tobacco work conference, make scientific judgment of the current situation faced by economic development of the tobacco industry, earnestly analyze the existing contradictions and problems, and make arrangements and planning for the major working tasks for 2013.

Deputy Director-General Yang Peisen of the STMA attended the meeting and delivered a keynote speech.

In the speech, Yang pointed out that since the beginning of 2013, the tobacco industry of China has achieved relatively favorable results in its work of formulating development planning, which has mainly been embodied through strengthening of research of major subjects intended to provide the tobacco industry with basis for decision making on regulation and control, further strengthening of regulation and control over planning to optimize the structure of raw materials, and strict control over the scope of production capacity and promotion of investment management to higher levels.

On well doing the current work of planning for the development of the tobacco industry, Yang emphasized the following three major points:

Firstly, efforts shall be made to strengthen the macroeconomic situation analysis and research of strategies for the development of the tobacco industry under the new situation, in order to strengthen the pertinence and effectiveness of regulation and control by the tobacco industry, and well make readjustment to the status of markets.

Specifically, efforts in this endeavor shall be particularly made to strengthen research of strategies for the development of the tobacco industry, with priority given to research of three major subjects of "where the bonus of reform lies, where the development potential lies and where the targets for pursuit lie"; to strengthen regulation and control over cigarette markets, rationally reform the structure of production and marketing on the basis of the real market demand, and increase effective market supply; and to strengthen control and management over the government-issued quotas for leaf tobacco production and marketing, and resolutely bring the annual State leaf tobacco purchase quotas for 2013 under the redline of 50 million dan (2.5 million tons).

Secondly, efforts shall be made to strengthen management over investment planning and projects, in order to enhance the sustainable development capacity of the tobacco industry.

Specifically, steps shall be taken to further promote the level of technological equipment and the comprehensive support capacity of the tobacco industry in accordance with the principle of "being advanced, economical and applicable", further improve the construction of leaf tobacco working stations, storage facilities, operation facilities and other infrastructure facilities, and strictly control the production capacity, the construction of housing for operation and projects of investment in business diversification; and to highlight priorities of investment, strengthen management over investment, strictly control the scope of investment in business diversification, and improve and implement the various investment management systems.

And thirdly, efforts shall be made to strengthen control over pricing, in order to create an environment of orderly market competition for the development of competitive brands of China's tobacco industry.

Specifically, steps shall be taken to strengthen control over pricing of cigarette products and strengthen market supervision and inspection; and to strengthen control over cigarette brands and specifications, and improve the mechanisms for entry-exit of cigarette brands and specifications, in order to keep strengthening the scale effects and competitiveness of cigarette brands.

The dignitaries attending the meeting included leaders of the relevant departments and units of the STMA and China National Tobacco Corporation, and leaders of the relevant units directly affiliated to the tobacco industry of China in charge of developing planning, investment management and marketing. Enditem