Chinese Province Adopts Policies to Stimulate Tobacco Production

Source from:  TobaccoChina Online 06/17/2009

The provincial price control, finance and tobacco monopoly administrative authorities in east China's Shandong Province - a key tobacco-producing region - have jointly issued the Notice on Leaf Tobacco Purchase Prices and Subsidization Policies for 2009, making specific provisions for setting prices for leaf tobacco purchase and relevant policies on substitution in the forthcoming harvest season. The promulgation of the notice will play a significant role in arousing the production enthusiasm of tobacco growers, regulating investment and subsidization in tobacco production, and maintaining sound development of the tobacco industry. Firstly, the notice provides for appropriate increase of State leaf tobacco purchase prices. Particularly, the State purchase price of the X2F grade flue-cured leaf tobacco will go up to 730 yuan (104 U.S. dollars) per 50 kilograms from the level of 625 yuan (89 U.S. dollars) per 50 kilograms, up 16.8 percent. Secondly, the notice provides that the principles for subsidization, the scope of subsidization, and ways and procedures for subsidization, accounting, supervision and inspection over subsidization, etc for special materials and special service for leaf tobacco production will still follow the Opinions of the Ministry of Finance and the National Development and Reform Commission on Issues Concerning Regulation over Investment and Subsidization in Leaf Tobacco Production. And thirdly, the notice requires all tobacco-producing zones in the province to earnestly implement the policies of the State on State leaf tobacco purchase prices and on investment and subsidization in leaf tobacco production, and requires all leaf tobacco companies in the province to strictly abide by the standards of the State for grading the quality of leaf tobacco in organizing leaf tobacco purchase in the upcoming harvest season. Enditem