China to Raise Leaf Tobacco State Purchase Prices in 2004

Source from:  Xinhuanet.com  06/21/2004

China will appropriately raise leaf tobacco State purchase prices this year, which is expected to benefit tobacco growers in southwest China's Yunnan Province, the largest tobacco-producing region in China known as the kingdom of tobacco. In late April, the State Development and Economic Restructuring Commission and the State Tobacco Monopoly Administration jointly issued a notice on pricing policies on State purchase of leaf tobacco in 2004, providing for appropriate increases of State leaf tobacco purchase prices. According to the notice, the average of flue-cured tobacco State purchase price in China in 2004 will rise to 477 yuan (57.46 U.S. dollars) per 50 kilograms from the level of 433 yuan (52.16 U.S. dollars) per 50 kilograms, roughly up 10 percent. Specifically, the base price on Grade One leaf tobacco will rise from 445 yuan (53.61 U.S. dollars) per 50 kilograms to 505 yuan (60.84 U.S. dollars) per 50 kilograms, Grade Two from 430 yuan (51.8 U.S. dollars) to 500 yuan (60.24 U.S. dollars), Grade Three from 400 yuan (48.19 U.S. dollars) to 480 yuan (57.83 U.S. dollars), Grade Four from 370 yuan (44.57 U.S. dollars) to 435 yuan (52.4 U.S. dollars), and Grade Five from 350 yuan (42.16 U.S. dollars) to 410 yuan (49.39 U.S. dollars). So far this year, Yunnan has grown 5 million mu (333,333 hectares) of tobacco. Enditem