Key Tobacco-Growing Region Successful in Developing Exclusive Bases

Source from:  Chongqing Economy newspaper 05/08/2005

Chongqing City - a key tobacco-growing region in southwest China - has been successful in developing exclusive tobacco production bases jointly with tobacco manufacturing enterprises in China over recent years. So far, Chongqing City has signed agreements with 10 Chinese tobacco manufacturing enterprises on the establishment of tobacco production bases, under which leaf tobacco produced in the bases will be exclusively supplied to the manufacturing enterprises concerned. Recently, Chongqing City hosted a meeting on joint establishment of exclusive tobacco production bases, in which six Chinese tobacco manufacturing enterprises - Jiangsu Provincial China Tobacco Industry Corporation, Changde Cigarette Factory, the General Tobacco Group, Qingzhou Cigarette Factory, Chengdu Cigarette Factory and Hangzhou Cigarette Factory - signed agreements with Chongqing City on exclusive bases establishment, providing for the supply of 590,000 dan (29,500 tons) of leaf tobacco annually. Before this development, four other Chinese tobacco manufacturing enterprises - Changsha Cigarette Factory, Shanghai Tobacco Group, Wuhu Cigarette Factory and Chongqing City China Tobacco Industry Corporation - had signed such agreements which provide for the supply of 495,000 dan (24,750 tons) of leaf tobacco annually. Consequently, the annual leaf tobacco yield of the exclusive tobacco production bases in Chongqing will reach 1.085 million dan (54,250 tons), or 75.9 percent of the city's annual leaf tobacco yield. Joint establishment of exclusive tobacco production bases is in accordance with an industrial policy of the State Tobacco Monopoly Administration (STMA). A top leader of Chongqing City Tobacco Company said recently that Chongqing City pursues the policy of encouraging Chinese tobacco manufacturing enterprises to sign agreements with it on joint establishment of exclusive tobacco production bases under the principle of "equality, mutual benefit, mutual assistance, mutual trust, high efficiency, responsibility and common development." The leader said that it is a fundamental policy of Chongqing City to provide qualified raw materials for Chinese tobacco manufacturing enterprises to develop big markets and big brands. According to other sources with Chongqing City Tobacco Company, the exclusive bases in Chongqing will have a total area of 300,000 mu (20,000 hectares) in 2005, and will be capable of turning out 60 percent of the total leaf tobacco yield of Chongqing City. In 2006, the exclusive bases in the city will be capable of producing over 1 million dan (50,000 tons) of leaf tobacco, or over 80 percent of the total leaf tobacco yield of the city, annually. The leader of Chongqing City Tobacco Company said that the establishment of exclusive tobacco production bases in Chongqing should be intended for long-term development, besides the generation of immediate interests. In particular, the construction of infrastructure facilities and the development of human resources will be given priority in the establishment of exclusive bases. In efforts to alleviate the intensity of labor of local tobacco growers in producing tobacco and strengthen their capacity against risks in tobacco production, Chongqing City Tobacco Company has decided to spend the next three years completing the construction of necessary infrastructure facilities for tobacco production in the city, including the construction of irrigation systems, the installation of tobacco machinery and the establishment of curing barns. Enditem