South Central China Province to Raise State Leaf Tobacco Purchase Price

Source from:  TobaccoChina Online 01/05/2012

The government of south central China's Hunan Province held a tobacco work conference in the provincial capital city of Changsha on December 27, adopting a decision to raise the State leaf tobacco purchase price in the province by an average of 20 percent in 2012, and to increase subsidies for local tobacco growers in the province in the year in accordance with the relevant policies.

In 2011, leaf tobacco production in Hunan Province maintained a trend of steady development with a high quality, with the quantity of leaf tobacco purchased by the State in the province in the year ranking the fourth in China. In the year, Hunan Province grew 1.2927 million mu (86,180 hectares) of leaf tobacco in total, up 28.8 percent year-on-year, and harvested 3.5924 million dan (179,620 tons) of leaf tobacco, up 19.14 percent year-on-year, with the average State leaf tobacco purchase price from the province reaching 884.58 yuan per dan (139 U.S. dollars) per 50 kilograms, up 19.46 percent year-on-year, and with the total income of tobacco growers in the province in the year reaching 3.819 billion yuan (597 million U.S. dollars), up 53.62 percent year-on-year. Also in 2011, Hunan Province generated 698 million yuan (110 million U.S. dollars) in leaf tobacco taxes, up 50.7 percent year-on-year, with the average income of tobacco growers in the province in the year reaching 44,600 yuan (6,970 U.S. dollars) per household, up 89.8 percent year-on-year, and with the unit income of leaf tobacco growing in the province in the year reaching 2,954 yuan (462 U.S. dollars) per mu (per 0.067 hectare), up 19.2 percent year-on-year. In the year, Hunan Province produced 65,500 dan (3,275 tons) of air-cured and sun-cured leaf tobacco, up 6,200 dan (310 tons) year-on-year, with the average State purchase price, output value, the amount of leaf tobacco taxes, the average income per household and the average unit income all reaching record highs, and with leaf tobacco production in the province entering a new historical stage of development. Besides, Hunan launched activities to generalize a package of six key production technologies in the province in the year, including the technologies for developing strong tobacco seedlings and developing organic leaf tobacco products. In the year, the province took steps to reform the structure of tobacco production of all varieties, and strengthen the generalization of highly aromatic tobacco varieties, contributing to making the structure of tobacco varieties in the province more rational. It was revealed at the meeting that in light of changes of leaf tobacco production costs in China during the current period of time, the State Tobacco Monopoly Administration has decided to raise the State leaf tobacco purchase price in the whole of China by an average of 20 percent in 2012, raise the unit subsidies for improving the structure of leaf tobacco to an average of 75 yuan per mu (11.8 U.S. dollars per 0.067 hectare) in 2012, and set the unit subsidies for purchasing sporadically grown leaf tobacco professionally graded to a an average of 50 yuan per dan (7.9 U.S. dollars per 50 kilograms) in 2012. Enditem