TTM to Pay More for Tobacco to Help Farmers

Source from:  tobaccoreporter.com 10/20/2004

The Thailand Tobacco Monopoly (TTM) could pay more for the tobacco it purchases next year in order to assist farmers faced with rising costs. TTM plans to pay 49 Thai baht (THB1=US$0.02) for one kg of dried burley leaf this year, an increase of two baht over last year. It may also increase the guaranteed price for Virginia leaf by one baht. It has not decided whether to raise the guaranteed price for Turkish tobacco. An official from the excise department says the higher payments would partly offset costs of production, which have been increasing due to soaring fuel prices. Thai farmers import fertilizer and pesticides. The TTM and exporters signed contracts last month to buy 18 million kg of Virginia tobacco, 39.78 million kg of burley and 8.59 million kg of Turkish tobacco for the 2004-2005 crop season. TTM says it is purchasing less tobacco in the upcoming season because it has a surplus of stock. Enditem