China's Leaf Tobacco Production Expected to Remain Stable in 2007

Leaf tobacco production in China is expected to remain stable in 2007 for the 10th straight year while the State Tobacco Monopoly Administration (STMA) - the regulator of China's tobacco industry - is taking steps to further stabilize leaf tobacco production in the country. In light of changes of the general situation of agricultural production in China, particularly negative impacts on tobacco production cast by increases of labor prices in rural areas, the STMA has managed to raise prices of State purchase of leaf tobacco and set standards for pre-production investment, contributing to stabilizing the tobacco acreage in the country. So far this year, the tobacco monopoly administrative authorities across China have signed 2.85 million contracts with tobacco growers for the growing and supply of 2.085 million tons of leaf tobacco while the total tobacco acreage in China has reached 15.34 million mu (1.02 million hectares). It expected that the State leaf tobacco purchase quotas set for 2007 can be well met. For tobacco-producing regions across China, they have generally managed to strengthen efforts for innovation of leaf tobacco production technologies and popularization of advanced applied technologies. Some regions have initially realized commercial development of tobacco seedlings, mechanized tobacco growing, intellectualized leaf tobacco curing and unified prevention and control of plant diseases and pests. So far this year, intensive tobacco seedlings development and transplantation has covered 93 percent of the total tobacco acreage, with float seedlings development and commercialized seedlings development respectively accounting for 74 percent and 69 percent of the total. Over the past two years, the tobacco industry of China has invested over 7 billion yuan (over 920 million U.S. dollars) in the construction of support irrigation systems for tobacco production and leaf tobacco curing barns. Upon completion of construction, problems in drainage and irrigation for more than 9 million mu (more than 600,000 hectares) of tobacco plantations can be effectively solved, and the need to cure leaf tobacco harvested from 2.3 million mu (153,330 hectares) of tobacco plantations can be well met. As a result, tobacco-producing regions across China have seen their capacity to deal with natural disasters obviously strengthened, in the interest of providing basic guarantee for increasing the income of tobacco growers. Enditem