<strong>China: STMA Chief Urges Concerted Efforts to Promote Development of Provincial Tobacco Industry</strong>

Source from:  HongyunHonghe Groups 06/20/2014

Director-General Ling Chengxing of the State Tobacco Monopoly Administration (STMA) -- the regulator of China's tobacco industry -- has urged concerted efforts by both the manufacturing and commercial sectors of the tobacco industry of Yunnan to promote its development in a future period of time.

In an addressed delivered at a meeting to report development of the tobacco industry of Yunnan held on June 7, Ling emphasized that so far this year, the tobacco industry of Yunnan has realized "three good starts", and that at the present and over a future period of time, the provincial tobacco industry needs to unswervingly strive to meet its strategic development target and make concerted efforts to promote its development in terms of reform, implementation of measures for leaf tobacco production and promotion of the efficiency of operation.

Also attending the meeting were Yunnan Provincial Deputy Governor Ding Shaoxiang and STMA Deputy Director-General Xu Ying.

On June 4-6, a delegation led by Ling, accompanied by Ding Shaoxiang, attended a symposium on the development of cigarette brands of Yunnan in the second half of 2014, respectively inspected Zhaotong Cigarette Factory of Hongta Group and Qujing Cigarette Factory of HongyunHonghe Tobacco Group, and checked construction of leaf tobacco production bases and projects of irrigation for tobacco production in Zhaotong City and Qujing City.

After hearing reports on the work of Yunnan Provincial Tobacco Monopoly Administration (Tobacco Company) Director and General Manager Yu Yundong and China Tobacco Yunnan Industrial Co., Ltd. General Manager and Communist Party group Secretary Zhu Shaoming, and on coordination between production and sales of cigarettes in Yunnan in the second half of 2014 given by China Tobacco Yunnan Industrial Co., Ltd., Ling pointed out that since the beginning of 2014, the tobacco industry of Yunnan, under the leadership of the Chinese Communist Party Yunnan Provincial Committee, Yunnan Provincial People's Government and the STMA, has made "three good starts".

Firstly, China Tobacco Yunnan Industrial Co., Ltd. has realized a good start in "two unifications and two integrations". In the entire process of reform, it has succeeded in focusing on the crucial link of unification of marketing, the crucial link of establishment of leadership and the crucial link of coordination between production and marketing.

Secondly, Yunnan Provincial Tobacco Monopoly Administration has realized a good start in meeting the general requirement for leaf tobacco production by successfully exercising strict control over the acreage of tobacco crops, increasing both characteristics and varieties of products and generalizing transplantation of tobacco seedlings under mulching film.

And thirdly, the tobacco industry has realized a good start in carrying out activities of education on and practice in the mass line of the Communist Party.

In light of the priorities in the operation of the tobacco industry of Yunnan over a future period of time, Ling proposed that the provincial tobacco industry be firm in meeting its strategic target of "maintaining the leading status in the national tobacco industry and setting new world records" set forth in 2013. Ling also proposed that the manufacturing and commercial sectors of the provincial tobacco industry make concerted efforts to promote its development in the following three respects in a future period of time.

Firstly, the manufacturing and commercial sectors of the provincial tobacco industry should make concerted efforts to promote fulfillment of the reform plan for "two unifications and two integrations". Steps should be taken to boldly manage reform with full confidence, manage marketing with accurate aiming of targets and bring into play advantages to gather more and more momentum.

Secondly, the manufacturing and commercial sectors of the provincial tobacco industry should make concerted efforts to implement crucial approaches for leaf tobacco production. Steps should be taken to control the acreage of tobacco crops, improve the structure of products, promote application of policies on subsidies, and well build infrastructure projects for tobacco production.

And thirdly, the manufacturing and commercial sectors of the provincial tobacco industry should make concerted efforts to raise the efficiency of monetary capital operation. The tobacco industry of Yunnan needs to take a lead in realizing the annual production targets for 2014 in accordance with performance grading system of the STMA.

Ding Shaoxiang, the deputy provincial governor of Yunnan, introduced the situation of economic operation in Yunnan and the planning of the province for operation in a future period of time.

Ding required the tobacco industry of Yunnan to contribute to realization of the annual target of the national tobacco industry to have a growth rate of 8 to 10 percent and generate over 1 trillion yuan (158.7 billion U.S. dollars) in taxes and profits in 2014, and to ensure steady growth of income of tobacco growers and local finance revenue in Yunnan.

Ding also required the provincial tobacco industry to increase the generation of single-case amount of taxes and profits in cigarette production, promote the production of high-quality leaf tobacco to higher levels, and strengthen support by the production of leaf tobacco and cigarettes for economic development in Yunnan.

Relevant leaders of the Administrative Affairs Office and the Department of Accounting of the STMA, China National Leaf Tobacco Corporation and China Cigarette Sales Corporation attended the meeting and delivered speeches. China Tobacco Yunnan Industrial Co., Ltd. Board of Directors Chairman Ye Libin presided over the meeting. Also attending the meeting were members of the leaderships of the manufacturing and commercial sectors of the tobacco industry of Yunnan. Enditem