Provincial Government Holds Meeting on Leaf Tobacco Purchase

Source from:  Chenzhou Daily newspaper 07/05/2005

The government of south central China's Hunan Province - one of the major tobacco-producing regions in China - held a meeting in the southern city of Chenzhou in early July on arrangements for State purchase of leaf tobacco in the province in the forthcoming harvest season. The meeting set the annual quota of State leaf tobacco purchase from Hunan for 2005 at 132.5 million kilograms, and the up-to-standard rate of leaf tobacco of all grades to be purchased from the province at 80 percent or higher, with the leaf purity meeting the demand of customers. As tobacco is a government monopoly in China, the production and marketing of tobacco in the country is strictly controlled under the government's quota system. The meeting required the State-run tobacco companies in all parts of Hunan to strengthen control and supervision in leaf tobacco purchase and well regulate their behavior of purchase. They shall organize leaf tobacco purchase strictly in accordance with the contracts signed with the tobacco growers, and strictly in line with the pricing policy of the State, according to the meeting. It urged tobacco companies in the province to apply the system of close computerized codification, strengthen management and manage to establish a early warning mechanism for tobacco trade. The meeting also urged tobacco companies in the province to upgrade their leaf tobacco purchase facilities and improve services for tobacco growers in operating the State purchase of leaf tobacco. It required them to conduct on-site preliminary inspection of the quality of leaf tobacco, carefully make schedules for leaf tobacco purchase, strictly observe relevant quality standards of the State and actively raise funds for leaf tobacco purchase. The meeting warned against any default in payment of funds to tobacco growers in the purchase of leaf tobacco. So far, Chenzhou City has extended 800,000 yuan (96,385 U.S. dollars) in preproduction subsidies for tobacco production, and is expected to extend more subsidies to tobacco growers in the city after completion of State leaf tobacco purchase for 2005. Enditem