Malaysia Looks to Post-AFTA Tobacco Alternative

Source from:  Tobacco Reporter 04/29/2009

The jute-like plant, kenaf, is being promoted by the Malaysian government as an alternative crop for the country's less competitive tobacco growers following the introduction of AFTA (ASEAN Free Trade Area) next year, according to a report by Hanim Adnan in The Star. AFTA could result in lower prices for local tobacco and a reduction in import duties for tobacco. The cost of production of Malaysian tobacco growers is said to be about RM10 per kg, almost double the cost of production in Thailand and Indonesia. The Star said it was believed that the National Tobacco Board would help Malaysian tobacco growers to introduce other crops alongside tobacco with the eventual goal of replacing tobacco where it was no longer viable. Enditem