Chinese Region Increases Subsidies for Leaf Tobacco Production

Source from:  Henan Daily newspaper 11/29/2005

Henan Province - a major tobacco producing region in central China - is planning to increase subsidies for leaf tobacco growing in the province in 2006, in an effort to realize sustainable development of tobacco production. On November 24, the provincial government of Henan held a tobacco work conference in the provincial capital city of Zhengzhou, deciding to extend over 280 million yuan (over 34.5 million U.S. dollars) in subsidies for leaf tobacco growing in the province in 2006, with the unit amount of subsidies to reach 200 yuan (24.6 U.S. dollars) per mu (0.067 hectare), compared with the total of 200 million yuan (24.6 million U.S. dollars) and the unit amount of 185 yuan (22.8 U.S. dollars) per mu (0.067 hectare) in 2005 respectively. According to the meeting, the subsidies to be extended in 2006 will be mainly used for developing intensive tobacco seedlings breeding and for purchasing such supplies as chemical fertilizer, mulching films, coal and pesticide for leaf tobacco production. According to conventional technical estimation, sustainable development of leaf tobacco production in Henan merits subsidies of at least 400 yuan (49.2 U.S. dollars) per mu (0.067 hectare) annually. But with limited financial resources available, what the province can do presently is to gradually increase subsidies. The general plan of Henan Province for sustainable development of leaf tobacco production provides that subsidies for leaf tobacco production in the province will gradually increase to 300 yuan (36.9 U.S. dollars) per mu (0.067 hectare) in 2010. Enditem