Tobacco Industry Meets on Sustainable Development of Leaf Tobacco Production

Source from:  STMA 11/08/2005

The State Tobacco Monopoly Administration (STMA) - the watchdog of China's tobacco industry - held a national leaf tobacco production symposium in Beijing on October 26-27, with the discussions focused on the draft Outlines of the Program on Sustainable Development of Leaf Tobacco Production in China. The draft Outlines of the Program on Sustainable Development of Leaf Tobacco Production in China (hereinafter referred to as "the draft Outlines of the Program") particularly points out that leaf tobacco production is the basis for the development of the tobacco industry, and that sustainable development of leaf tobacco production concerns the overall development of the tobacco industry. It explains that leaf tobacco production in China should be intended to ensure effective supply of raw materials for the production of "Chinese-style" cigarettes, promote smooth progress of the structural reform of China's tobacco industry, ensure smooth implementation of its strategies for developing big tobacco manufacturing enterprises and big cigarette brands, promoting steady development of the tobacco industry and enhancing its competitiveness in an all-round way. The draft Outlines of the Program makes the following provisions for promoting sustainable development of leaf tobacco production in China, particularly for proper protection of tobacco growers' interests in leaf tobacco production: STRENGTHENING OF GENERAL PLANNING, COORDINATION Leaf tobacco production should be put under general planning for the development of the whole tobacco industry, in order to realize coordinated development of natural resources, the economy, the ecological system and both the manufacturing and commercial sectors of the tobacco industry. Rational distribution: Both tobacco-growing regions and tobacco growers should be rationally distributed. Any reform of the structure of tobacco-growing regions in China should follow the general guideline of "appropriately developing tobacco-growing regions in south China, stabilizing the development of tobacco-growing regions in the Yellow River-Huaihe River Tobacco-Growing Zone and restructure tobacco-growing regions in north China." Specifically, the development of tobacco-growing regions in south China should be in accordance with the policy of "internal (regional) restructuring, choosing the most suitable areas in planning the development of new tobacco-growing regions, and appropriately extending the scope of leaf tobacco production." Meanwhile, the development of the Yellow River-Huaihe River Tobacco-Growing Zone should be in compliance with the policy of "developing tobacco-growing regions in the most suitable areas, supporting leaf tobacco production in priority regions, stabilizing the total output and realizing steady development." Improvement of the environment for tobacco growing: Efforts should be made to improve the environment for tobacco growing and make tobacco growing by farmers less difficult. Specifically, steps should be taken to build infrastructure facilities for leaf tobacco production in accordance with the relevant general planning. Priority should be given to projects of building irrigation systems for tobacco plantations and constructing intensive curing barns. Meanwhile, the purchase of farm machinery and development of field paths should be taken into property consideration. Strengthening of vocational training: All tobacco-growing regions in China should manage to establish the system of regular vocational training of tobacco growers and build facilities for vocational training, in order to increase the agricultural knowledge of tobacco growers and improve their professional quality. Through rational trade of land, tobacco growers can be led to develop leaf tobacco production of scale, form large-scale tobacco plantations and develop specialized tobacco-growing farm households, in accordance with the market principle. Improvement of services for tobacco growers: For local tobacco monopoly administrative authorities, they should focus their energy on improving their services for tobacco growers at the grassroots level in a socialized and specialized way. They should strengthen management through improvement of services, establish management systems for efficient provision of services for tobacco growers, and attach great importance to the setting and readjustment of leaf tobacco prices, in order that State leaf tobacco purchase prices will better meet the realities of leaf tobacco production. They should also manage to introduce or improve the "tobacco companies plus tobacco growers" and the "tobacco growers plus tobacco companies plus tobacco manufacturers" leaf tobacco production models, in greatly promoting the development of leaf tobacco production of scale, and in striving to promote specialization and industrial organization in leaf tobacco production as well. Improvement of pricing policy: Efforts should be made to improve the pricing policy to increase the income of farmers from leaf tobacco production and protect the interests of tobacco growers. ADOPTION OF MEASURES FOR EFFECTIVE PROTECTION OF INTERESTS OF TOBACCO GROWERS Steps should be taken to establish risks early warning and aid systems, and strengthen cooperation with the government's meteorological, agricultural, forestry, water resources and other departments in establishing early warning systems against natural disasters, in order to issue early warnings against such natural disasters as drought, flooding, hails, plant diseases and insect pests. In regions with the necessary conditions, insurance funds against risks in leaf tobacco production should be created. Appropriate aid should be extended to tobacco growers suffering from serious or large-scale natural disasters, in order to lessen their risks in leaf tobacco production, keep tobacco growers well informed and stabilize their ranks. Efforts should be made to actively introduce commercial insurance into the business of leaf tobacco production, promote the establishment of the system of common insurance for tobacco companies and tobacco growers, and keep increasing insurance policies for leaf tobacco production and extending the scope of insurance for leaf tobacco production. Moreover, efforts should also be made to establish and improve the leaf tobacco reserve and reallocation mechanism, in order to prevent or reduce negative impacts on leaf tobacco production from fluctuations of international or domestic leaf tobacco market supply. ESTABLISHMENT OF SYSTEMS OF INFORMATION ON LEAF TOBACCO PRODUCTION Efforts should be made to establish systems of information on leaf tobacco production, including systems of information on leaf tobacco output, quality, styles and characteristics of major tobacco-growing regions, systems of information on the basic ecological environment conditions and geographical conditions of major tobacco-growing regions, systems of information on basic tobacco-growing farmland and infrastructure facilities at leaf tobacco markets, systems of information on weather forecast, plant diseases and insect pests prevention and control, and systems of information on comprehensive technical efforts against natural disasters in leaf tobacco production. Enditem