Leaf Tobacco Production in Favorable Trend in January-June

Source from:  STMA 06/27/2005

Leaf tobacco production in China was in a favorable trend in the first half of 2005, with the acreage of tobacco across the country reaching 16.67 million mu (1.11 million hectares), an increase of over 1.5 million mu (over 100,000 hectares) over the same period of 2004. In light of the existence of difficulties for tobacco production such as price fluctuations and increase in the cost of production, the State Tobacco Monopoly Administration (STMA) has strengthened efforts to support tobacco production in China, and has adopted a series of supportive policies or measures in order to stabilize tobacco production in the country. Firstly, in dealing with negative impacts from hikes in prices of farm supplies, the STMA, at the end of 2004, adopted a policy to increase the State leaf tobacco purchase prices and raise the standards of subsidization for leaf tobacco production, to lower the cost production and benefit tobacco growers. Secondly, in light of sharp increases in prices of coal for tobacco production since the beginning of this year, the STMA has promised that any price hikes in this respect would be bearable by the tobacco industry instead of tobacco growers. Specifically, the tobacco industry will extend subsidies for increases in prices of coal for tobacco production at a rate of 20 yuan per mu (36 U.S. dollars per hectare). Thirdly, the STMA has raised 2.6 billion yuan (313 million U.S. dollars) from profits from the tobacco trade and is using it build badly needed infrastructure facilities for tobacco production, solve problems left over from the history of the tobacco trade and place laid off workers. In particular, 1 billion yuan (120 million U.S. dollars) has been earmarked for subsidizing the construction of irrigation systems for tobacco production in tobacco growing zones. Meanwhile, the STMA has required tobacco companies, governments and tobacco growers in tobacco growing zones across China to raise necessary funds to this effect. The adoption of such policies and measures by the STMA has contributed to arousing the enthusiasm of farmers for growing tobacco, and enabling the tobacco industry to gain the initiative in tobacco production. In response, the tobacco growing zones across China have earnestly implemented the policies or measures of the STMA, strengthened management over tobacco production, formulated support policies in a full range and increased pre-production investment, ensuring the implementation of annual leaf tobacco production quotas. On the basis of stabilizing the acreage of tobacco, tobacco-growing zones across the China have stepped up efforts to generalize the application of advanced technology in tobacco production, contributing to significantly raising the quality of products. So far this year, the acreage of tobacco grown with seedlings developed through intensive breeding has reached 13.74 million mu (916,000 hectares), accounting for 82 percent of the total acreage of tobacco in China, up 2.81 million mu (187,300 hectares) year-on-year. In particular, the acreage of tobacco grown with seedlings developing through floating breeding has reached 10.1 million mu (673,300 hectares), accounting for 61 percent of the total acreage of tobacco in China, up 2.46 million mu (164,000 hectares) year-on-year. Meanwhile, the area of model tobacco plantations for growing tobacco in partial substitution for high-quality tobacco imports has increased to 110,000 mu (7,333 hectares) from the level of 50,000 mu (3,333 hectares). The area of model tobacco plantations for applying advanced support production technologies on a trial basis, particularly the technology measured with maturity, has increased to 250,000 mu (16,667 hectares) from the level of 150,000 mu (10,000 hectares). Moreover, tobacco-growing zones across China have strengthened efforts to build standard curing barns, generalize the development of intensive curing barns and generalize the use of technologies for balanced application of fertilizers. In 2005, tobacco-growing zones across China have taken the formulation of plans for sustainable development as a major task. In light of the market demand and the status quo of resources available, they have all set major targets or directions for tobacco production development. In particular, they have all established the system for the protection of basic tobacco plantations, strengthened efforts for infrastructure facilities development and managed to improve the environment for leaf tobacco production, to promote sustainable development of leaf tobacco production. So far, major tobacco-growing provinces in China have basically completed the formulation of plans for sustainable development of leaf tobacco production in them. A panel of experts organized by the STMA will conduct the proof of plans of major tobacco-growing zones for sustainable development of leaf tobacco production, in efforts to promote their role in leading leaf tobacco production in China. Enditem