Chinese Authorities Issue Regulations on Leaf Tobacco Pricing

Source from:  Farmers Daily newspaper 03/01/2006

The National Development and Reform Commission and the State Tobacco Monopoly Administration of China have jointly issued a set of regulations on stabilizing leaf tobacco prices in China in 2006, in an effort to urge farmers to make rational arrangements for tobacco growing and promote stable development of leaf tobacco production. [img border=0 hspace="4" vspace="4" align="left" src=http://www.tobaccochina.com/english/picture/2005112809285596.jpg] The regulations provides that benchmark State leaf tobacco purchase prices in China in 2005 will remain stable and will be basically on a par with those of 2005 - 505 yuan (62 U.S. dollars) per 50 kilograms for Grade One price zones, 500 yuan (61.6 U.S. dollars) per 50 kilograms for Grade Two price zones, 480 yuan (59.1 U.S. dollars) per 50 kilograms for Grade Three price zone and 435 yuan (53.6 U.S. dollars) per 50 kilograms for Grade Four price zones. The regulations also provides that State purchase prices for leaf tobacco of all grades will remain on a par with those of 2005 and that the policy on definition of leaf tobacco price zones will also remain unchanged from 2005. The regulations urges all tobacco producing regions in China to earnestly implement the policy of the State on leaf tobacco pricing and strictly abide by the standards of the State for grading the quality of leaf tobacco, providing that the leaf tobacco of all grades for sale to the State must meet the relevant quality control standards of the State. The regulations provides that competent price control administrative authorities at all levels shall, jointly with tobacco monopoly administrative authorities and other competent administrative authorities at the corresponding level, manage to strengthen supervision over implementation of the policy of the State on leaf tobacco pricing, and investigate and punish any act of deliberately downgrading prices, illegally upgrading prices, readjusting prices in excess of authority, etc. Enditem