China: Hubei Province Makes Smooth Progress in Building Infrastructure for Tobacco Production

Hubei Province in central China has made smooth progress in the execution of projects of construction of infrastructure facilities for tobacco production across the province so far in 2012, with all projects of building infrastructure facilities in exclusive high-quality leaf tobacco production bases in the province started by mid-October. In general, the projects of construction of infrastructure facilities for tobacco production in Hubei Province have been completed by 50 percent or higher. In 2012, the State Tobacco Monopoly Administration – the regulator of China’s tobacco industry – has approved 16,400 projects of construction of infrastructure facilities for tobacco production in Hubei Province. Hubei Province has applied for budgets of subsidies by the tobacco industry to the tune of 914 million yuan (145 million U.S. dollars) (excluding subsidies for projects of water sources). As a result, the construction of infrastructure facilities for tobacco production in Hubei Province in 2012 is the most extensive in history and involves the heaviest investment by the tobacco industry so far. So far, parts of the infrastructure facilities built in tobacco-producing zones in the province by the end of the tobacco harvest season this year, including leaf tobacco air-curing barns, tobacco machinery facilities and tobacco seedlings development facilities, have been put into operation. Presently, operations are busy underway for building irrigation facilities for tobacco production and paths in tobacco fields and for preparation of farmland for tobacco production. All the projects are expected to be completed by the end of March 2013. Enditem