BAT Contributes RM10m to Replant Tobacco

Source from:  Bernama 03/16/2009

BRITISH American Tobaco (Malaysia)Bhd (BAT) is contributing RM10 million to finance the replanting of tobacco that were damaged during heavy rains early this month. Its director of operations, Datuk Chan Choon Ngai said the money will be channelled to the growers through the National Kenaf and Tobacco Board to enable the replanting of tobacco mid next month. "BAT will help to reduce the burden of those who have suffered huge losses," he said when met by Bernama in Kota Bahru today. Tobacco growers in the Bachok and Pasir Puteh area were said to have suffered great losses following heavy rains for three days from March 1. Choon Ngai said the money would be used to finance the preparation of land, purchase of fertilizers and poison by the affected 1,500 growers. He said BAT had previously spent RM8 million to start planting work for the 2009 season which began in January but had however suffered losses after the rains drowned the plantings. The RM10 million will be channelled soon, he said. Choon Ngai said BAT needed four million kilogramme of dried tobacco leaves a year for production and 25 per cent of that was imported from neighbouring countries. If there is no supply from Thailand, Indonesia or the Philippines, then the company has to import it from Brazil or Zimbabwe which costs higher. "If we are to import from Brazil or Zimbabwe one million kg, the price is about RM40 million when compared with about RM10 million from Asean countries,"he said. He also expressed hope that the local farmers will continue to grow tobacco and help to prevent the outflow of foreign exchange. Enditem