CHINESE TOBACCO INDUSTRY LIGHTS UP IN FIRST HALF

Source from:  au.biz.yahoo.com BEIJING, July 14 Asia Pulse  07/15/2005

China's tobacco industry has progressed steadily in the first half of this year, with tobacco leaf production better than in 2004. According to statistics of the State Tobacco Monopoly Bureau, the industrial and commercial taxes and profit realized by the industry exceeded 120 billion yuan (US$14.5 billion) in the first half of this year, up 17 per cent year on year, of which, the industrial and commercial tax realized was 80.4 billion yuan, up 12 per cent. ADVERTISEMENT Despite serious drought and flood disasters in some provinces, China's planting area of tobacco leaf this year still increases by 1.6 million mu (15 mu equal to one hectare) over last year to reach 16.67 million mu. With production conditions of tobacco leaf being better than in last year, the amount of purchase this year may be equal to or even exceed the amount in 2004. . Production and sales of cigarettes maintained coordinated growth in the first six months, with the output of cigarette growing 4.9 per cent year on year to be 19.87 million cases, and sales growing 3.8 per cent to be 19.81 million cases. Due to rectification of resources, the number of Chinese cigarette enterprises decreased from 57 at the end of 2004 to 49 at present and is expected to further drop to 30 in 3-5 years. Enditem