Category: Leaf

  • India Allows Sale of Excess Tobacco

    India Allows Sale of Excess Tobacco

    Photo: Tobacco Reporter archive

    The Indian government has allowed the sale of excess tobacco produced by registered and unregistered growers without penalty on auction platforms in Karnataka, reports Mint.

    “Union Minister of Commerce and Industry Shri Piyush Goyal has considered to allow the sale of the excess flue-cured Virginia (FCV) tobacco produced by registered growers and unauthorized flue-cured Virginia tobacco produced by unregistered growers without any penalty considering the low production during the 2022–2023 Karnataka crop season,” the commerce ministry said.

    Due to continuous rains in June and July of last year, total production of FCV in Karnataka was 59.78 million kg against the crop size of 100 million kg authorized by the tobacco board.

    The government’s decision not to impose penalties on the sale of excess FCV will help farmers recover monetary loss due to lower production during the season, helping growers to continue their livelihood, according to the ministry.

  • Zimbabwean Farmers Anticipate High Prices

    Zimbabwean Farmers Anticipate High Prices

    Photo: Taco Tuinstra

    Tobacco farmers in Zimbabwe are expecting high marketing prices this year following a good growing season and improved curing methods, reports The Herald

    “Our assessment of the tobacco crop to date promises higher yields and improved quality. This view is shared by a number of contractors,” said Rodney Ambrose, CEO of the Zimbabwe Tobacco Association. “It is in this regard that we are anticipating average prices to be firmer this season.

    “There is also a level of increased demand for the crop, so this will help lift the average prices.”

    “Farmers are anticipating high prices as the quality of the crop in the field is very good,” said Shadreck Makombe, president of the Zimbabwe Commercial Farmers Union. “All that is left is for farmers to do proper curing. We encourage farmers not to be extravagant and [to] save their hard-earned money and be able to finance next season’s operations.”

    “The 85 percent foreign currency retention increase is surely going to put more money in farmers’ pockets,” said Makombe.

    According to Edward Dune, vice president of the Tobacco Farmers Union Trust, all farmers are looking forward to a rewarding season. “The playground has to be level in terms of pricing,” he said. “Let the price matrix reward on the basis of quality. No merchant should be a farmer’s favorite given that some are paying more for the same quality to avoid side marketing.”

    The Tobacco Farmers Union Trust is lobbying for viable prices to enhance sustainability, according to the organization’s president, Victor Mariranyika.

  • Zimbabwe Marketing Dates Announced

    Zimbabwe Marketing Dates Announced

    Image: Tobacco Reporter archive

    The auction tobacco marketing season opens March 8 with contract tobacco sales opening the next day, reports The Herald.

    “All stakeholders are advised that the 2023 auction tobacco marketing season opens on Wednesday, 8 March,” said Emmanuel Matsvaire, acting chief executive of the Tobacco Industry and Marketing Board. “Sales at licensed auction floors will start at 9 a.m. Contract tobacco sales will open on Thursday, 9 March.”

  • Larger Leaf Quality and Volume Expected

    Larger Leaf Quality and Volume Expected

    Image: Tobacco Reporter archive

    A significantly higher volume and quality of tobacco leaf is expected in Zimbabwe this year due to good rains during the farming season, reports Xinhua News.

    The quality of the crops is good and will likely bring in high prices, according to George Seremwe, president of the Zimbabwe Tobacco Growers Association.

    “This year, we have got a very good crop,” said Seremwe. “Even the dry land crop, which is rain-fed, is looking like the irrigated crop because the rains were quite good.”

    The Tobacco Industry and Marketing Board is still assessing crops to determine the expected output.

  • Technology Facilitates Regulation in Zambia

    Technology Facilitates Regulation in Zambia

    Photo: Taco Tuinstra

    The Tobacco Board of Zambia (TBZ) has captured over 40,000 farmers on its electronic registration and monitoring system introduced two years ago, reports Zambia Daily Mail.

    In 2020, the TBZ introduced the Bright Leaf System to regulate the production, buying and selling of tobacco in the country.

    TBZ information communication technology officer Maximillian Kasonde said the system has brought relief to the board in that it is now aware not only of the exact number of farmers in the country but also of their identities and their locations.

    “It has made the marketing and registration system easier,” Kasonde said.

  • Zimbabwe Debates Curing Fuel Options

    Zimbabwe Debates Curing Fuel Options

    Photo: Taco Tuinstra

    Tobacco grower representatives in Zimbabwe are urging contractors to provide their members with sustainably produced wood rather than coal for leaf curing, according to an article in The Herald.

    The compliance enforcement framework (CEF) agreement signed by tobacco buyers and the Tobacco Industry and Marketing Board requires contractors to fund tobacco growing inputs, such as fertilizer and curing fuel.

    Under the CEF, a 1 hectare pack for small-scale production includes 500 kg of coal or its sustainable wood equivalent as curing fuel.

    While most contractors are providing farmers with coal, grower representatives believe wood is more sustainable. “We think wood of an equivalent to the coal component would be better as less charges would be incurred by farmers in U.S. dollar terms,” said Tobacco Farmers Union Trust Vice President Edward Dune.

    “Sustainable wood is the way forward as coal use is unsustainable and will likely be phased out in the near future if the current lobbying by environmentalists prevails,” echoed Rodney Ambrose, CEO of the Zimbabwe Tobacco Association.

    In 2021, the Zimbabwean government crafted the tobacco value chain transformation plan, which seeks to increase tobacco production to 300 million kg by 2025.

    The plan emphasizes sustainable production through reforestation programs, fuel-efficient curing facilities and the use of alternative energy sources for curing. It calls for research into the suitability as a fuel source of alternative tree species, such as giant bamboo.

  • Sri Lanka Urged to Diversify Crops

    Sri Lanka Urged to Diversify Crops

    Photo: Rawpixel.com

    The government of Sri Lanka should incentivize tobacco farmers to abandon the golden leaf if favor of alternative crops, according to a new publication from the Institute of Policy Studies or Sri Lanka.

    The study, reported The Sunday Observer, notes that tobacco farmers can earn better profits from cultivating other crops such as chili, brinjal, carrot, bitter gourd, cabbage and big onion.

    In 2017, the government declared it would ban tobacco farming in Sri Lanka by the end of 2020. While its deadline has lapsed, leaf cultivation has declined significantly in recent years. In 2020, 1,142 hectares, or 0.04 percent of Sri Lanka’s agricultural land, was dedicated to tobacco, according to the most recent statistics. Production totaled 9,224 metric tons that year.

    Among other recommendations, the study authors suggest building farmer resilience and strengthening the policy frameworks for alternative crops.

    These supply-side measures, they argue, could be complemented with demand-side measures to disincentivize the manufacturers from engaging in tobacco production and prevent nontobacco farmers from joining the industry.

    The also called for higher tobacco taxes and more awareness of the adverse health effects of tobacco consumption.

  • Brazil: Highest Tobacco Earnings Since 2014

    Brazil: Highest Tobacco Earnings Since 2014

    Photo: Taco Tuinstra

    Brazil earned $2.2 billion from leaf tobacco exports in 2022—the most since 2014 when the country sold $2.3 billion worth of leaf in the international market, reports Kohltrade. The 2022 figures were up 72 percent in value and 30.7 percent in volume over 2021, although comparisons with that year were impacted by the Covid-19 pandemic and related logistical challenges.

    Throughout 2022, Brazil shipped 412 million kg of leaf tobacco. When adding other non-leaf tobacco products, the export value reached $2.45 billion.

    Brazilian tobacco companies exported 32.1 million kg of cigarettes and cigars worth $156.33 million and 136.9 million kg worth $59.25 of stems and product extracts throughout the year.

    Europe was the main destination for Brazilian leaf tobacco in 2022. As a gateway to the continent, Belgium accounted for 28 percent ($610 million) of shipments. China placed second, buying 21 percent ($471 million) of Brazil’s tobacco, followed by the United States, which bought 6.5 percent ($143 million) of Brazil’s exported tobacco.

  • Buyer Loses License Over Side Marketing

    Buyer Loses License Over Side Marketing

    Photo: Taco Tuinstra

    Zimbabwe’s Tobacco Industry Marketing Board (TIMB) canceled Leanrise Tobacco’s buying license after finding the company guilty of side marketing, reports Zimeye.

    According to the TIMB, Leanrise illegally leased its license to Munyasha Tobacco.

    Leanrise denied the accusations and accused the regulator of misinterpreting the law. “We are not side marketing and there is nothing to substantiate any allegation of such nature,” the company said.

    Leanrise argued it is entitled to have agents to advance its business. “Any tobacco purchased by the use of the Leanrise license is tobacco purchased for Leanrise,” the company noted. “In any event, the Leanrise license cannot be used to purchase tobacco from growers who are not contracted with Leanrise.”

    The TIMB was unpersuaded by Leanrise’s defense, however. “After considering the contents therein, your justification for leasing your license to Munyasha Agro Pvt. Ltd. and all circumstances surrounding the matter, the Tobacco Industry and Marketing Board has decided to cancel your license in terms of the Tobacco Industry and Marketing (Prohibition of side marketing) Regulations, 2022 SI 77 of 2022,” the TIMB wrote.

  • Indian Tobacco Exports up in 2021–2022

    Indian Tobacco Exports up in 2021–2022

    Photo: Tobacco Reporter archive

    India exported tobacco and tobacco products worth $846 million during 2021–2022, reports The Hindu.

    In terms of quantity, value in rupees and value in U.S. dollars, exports grew 1.35 percent, 5.91 percent and 5.34 percent, respectively, according to A. Sridhar Babu, executive director of the Indian Tobacco Board.

    Flue-cured Virginia (FCV) tobacco accounted for the majority of unmanufactured tobacco exports, representing 53.62 percent in terms of quantity and 68.47 percent in terms of value.

    India is the world’s fourth-largest producer of FCV tobacco and third-largest exporter, selling its leaf to more than 50 countries.

    According to Babu, the crop in the southern region of Andhra Pradesh was severely affected by Cyclone Mandous in December 2022, forcing some farmers to replant their tobacco.

    In response, the Ministry of Commerce extended interest-free loans to the growers participating in the Tobacco Board’s Growers’ Welfare Fund Scheme.