Chinese County Strengthens Support for Tobacco Production

Source from:  Hefeng 04/03/2005

Hefeng County in central China's Hubei Province, taking advantage of the situation that Changde Cigarette Factory in the neighboring Hunan Province is operating a flue-cured tobacco production base in the county, is taking steps to strengthen support for local tobacco production. Hefeng County Tobacco Company is expected to invest 7.1 million yuan (855,410 U.S. dollars) in investment to support tobacco production in the county in 2005 - 3.1 million yuan (373,490 U.S. dollars) in subsidies for price differentials in purchasing material supplies and 4 million yuan (481, 920 U.S. dollars) in funding to support leaf tobacco production. The financial support will cover floating development of tobacco seedlings, the purchase of fertilizers and fumigants, the construction of curing barns, etc. In an effort to lower the cost of tobacco production using mulching film, the Hefeng County Government will additionally earmark 500,000 yuan (60,200 U.S. dollars) in funding to support the production of tobacco using mulching film in 2005. Consequently, the total financial support for tobacco production in Hefeng County in 2005 will reach 7.6 million yuan (917,410 U.S. dollars). Hefeng County is expected to grow over 50,000 mu (over 3,330 hectares) of tobacco in 2005. Computed by the total investment of 7.6 million yuan (917,410 U.S. dollars), the unit investment to support tobacco production in Hefeng County in 2005 will reach over 100 yuan (over 12 U.S. dollars) per mu (per 0.067 hectare). Enditem