Tobacco Exports Leap four fold

Source from:  By Emmy Olaki  06/17/2004

Despite controversies surrounding the industry, tobacco exports have grown four fold over the last six years, rising from 8m kilos in 1997 to over 35m kilos in the last harvesting season. The rise in production, which is projected to grow even higher has been attributed to British American Tobacco Uganda's opting out of the old cooperative system, which had stagnated production because of inflated input costs, non-payment to farmers and liberalisation of the industry among others. "Last season, farmers sold tobacco worth sh53b, and tobacco exports from the country yielded $49.2m. Corporate Tax from the industry last financial year amounted to sh43.7b," Jennifer Namuyangu (above), industry state minister said on Monday. Namuyangu was opening the 31st African regional meeting of the International Tobacco Growers Association at Speke Resort Munyonyo. At the meeting, stakeholders discussed the industry's survival when there is increasing pressure from the international community. "Our industry is very controversial and has lots of pressure coming up every now and then. We need to find ways to be on good terms with the authorities. Already in Uganda, the Government has just increased taxes on our products, so let's have fruitful deliberations," Shane de Beer, BATU boss said at a welcome cocktail for the delegates. Uganda has benefited from exports because of the fall in the Zimbabwe crop in past years. Enditem