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  • Persistence Pays

    Persistence Pays

    Photo: alisaaa

    Lessons from consumer advocacy groups that successfully fought for vaping regulation

    By Stefanie Rossel

    In the shaping of tobacco control legislation, the consumer is often ignored. Many governments find it easier to deny the health benefits of switching from combustible tobacco products to reduced-risk alternatives and simply ban less harmful nicotine-delivery systems. According to The Global State of Tobacco Harm Reduction, 37 countries currently prohibit the sale of nicotine vaping devices, and many others treat vapes like conventional tobacco products, which means restrictions on public consumption and bans on the promotion of e-cigarettes as safer alternatives to smoking.

    The consumer is typically denied a voice, as is the case at the Conference of the Parties to the World Health Organization Framework Convention on Tobacco Control (FCTC) (COP10), which will be hosted in Panama this November. Consumer advocates will not be allowed to participate in the event, not even as observers. The FCTC Secretariat, meanwhile, discourages treaty signatories from speaking with any group that is even remotely associated with the tobacco business, making interactions next to impossible.

    Despite such restrictions, recent examples show that with persistence, consumer advocacy groups can make a difference. For example, last year, the Philippines, a country with 19.9 million smokers, replaced its 2019 vaping ban with a sensible regulatory framework. Republic Act (RA) 11900, also known as “the vape law,” legitimizes vaping as a strategy for smokers to reduce their health risk, and it lowers the age at which vape products can be legally purchased from 21 to 18. Furthermore, the law moves the authority to regulate vapes and heated-tobacco products from the Philippines Food and Drug Administration (PFDA) to the Department of Trade and Industry. In 2021, the PFDA came under pressure after it was revealed that it had accepted significant funding from Bloomberg Philanthropies, a move that critics said subjected the Philippines’ health policy to foreign influence.

    The adoption of the vape law in the Philippines can largely be attributed to the persistent efforts of consumer organizations in countering misinformation.

    Engagement is Key

    Tobacco harm reduction (THR) advocates consider the Philippines’ vape law “a minor miracle” as it prevailed in a region that is strongly influenced by Bloomberg Philanthropies and the WHO, both of which tend to favor prohibitionists tobacco control approaches. Many Southeast Asian countries, including Singapore and Thailand, have banned vape products in line with WHO recommendations.

    “The adoption of the vape law in the Philippines, despite the influence of anti-THR groups, can largely be attributed to the persistent efforts of consumer organizations in countering misinformation,” says Peter Dator, president of consumer advocacy group Vapers PH. “These groups have been instrumental in challenging misconceptions surrounding vaping, advocating for evidence-based harm reduction strategies and ensuring that accurate information reaches policymakers and the public.

    “Through their consistent and dedicated campaigns, consumer organizations have played a vital role in shaping a more informed and balanced perspective on vaping, thereby influencing the decision to overturn the ban and embrace a more pragmatic approach to tobacco harm reduction in a region where such legislation has often been swayed by ideologically driven influences.

    “Vapers PH actively engaged in the process of overturning the vaping ban in the Philippines by taking concrete steps, such as leveraging social media platforms to raise awareness and disseminate accurate information about vaping’s benefits and risks. Additionally, we participated in various forums and public consultations dedicated to the vape bill, providing expert insights and representing the interests of vapers. By actively contributing to public discussions and presenting evidence-based arguments, our group, alongside several other vaping consumer groups here in the Philippines, played a crucial role in influencing the reconsideration of the ban and encouraging a more nuanced approach to vaping regulation.”

    Manufacturers, distributors and retailers are currently working through an 18-month transitory period to comply with the new legislation. Recently, the Philippines released guidelines for flavors, which, according to Dator, focus mainly on preventing their marketing to minors. For example, e-cigarette companies may not give their flavors names that may appeal to children.

    The Importance of Enforcement

    As a representative of consumer advocacy, Dator says he is pleased to see that the bill has taken steps toward regulating the vaping industry in a fairer manner than before. “However, while I appreciate the progress made so far, I believe that there is still more work to be done in terms of implementing these regulations effectively,” he says. “It’s important that the regulatory framework is comprehensive and well enforced, ensuring that manufacturers adhere to quality standards, provide accurate product information and refrain from targeting minors. Additionally, there should be measures in place to monitor and assess the long-term health effects of vaping products as this information is crucial for consumers to make informed decisions about their health.”

    Dator believes the rules should be strengthened to ensure the safety and well-being of consumers. “The ultimate goal should be to strike a balance between providing adults with a potentially safer alternative to traditional smoking while also preventing any unintended negative consequences, particularly among younger individuals,” he says.

    “While the bill has transformed into law, its true impact depends on how well the regulations are enforced and monitored. If the implementation process lacks rigor or faces challenges in terms of oversight and enforcement, there is a notable risk that the objectives of the law could be undermined. Therefore, the success of the law hinges on the commitment to robust implementation strategies that ensure compliance with the intended regulations and prevent any potential subversion of the law’s intent.”

    Sharing information, knowledge and strategies are key, especially in a regional context as what happens in one country may/will impact surrounding countries.

    A Resource of Information

    New Zealand, too, has been praised for its regulation of vaping. Unlike Australia, where vape products are available only on prescription, vaping remains legal as a smoking cessation tool under New Zealand’s Smoke-Free Aotearoa 2025 Action Plan, an amendment of the Smokefree Environments and Regulated Products Act (SFEA) from 1990.

    As in the Philippines, consumer advocates helped shape regulation in New Zealand. As the process to regulate vaping under the SFEA got underway, advocates contacted elected officials, health providers and community groups and offered to be a source of information. Members of the Aotearoa Vapers Community Advocacy (AVCA), for example, attended meetings to present science and research.

    “AVCA had an approved vendor list whereby the vendors agreed to equipment and liquid standards to self-regulate the industry,” says AVCA co-founder Nancy Loucas. “We gave this to the government to use as a template.”

    Loucas believes that New Zealand’s comparatively small size and progressive policies made it easier to help shape sensible, evidence-based regulation that recognizes the principle of harm reduction. “Because of the economies of scale, it is much easier to engage with officials here than in Australia, “ she says. “Australia is very conservative—authoritarian—comparatively.”

    Loucas is also executive coordinator of the Coalition of Asia Pacific Tobacco Harm Reduction Advocates, an unfunded grassroots alliance among the THR advocates and their respective organizations in the region.

    She says collaboration among consumer advocacy groups from different countries is beneficial for consumers and consumer groups. “Sharing information, knowledge, strategies are key, especially in a regional context as what happens in one country may/will impact surrounding countries,” she says. “Commiseration and support is also important on a mental health level. Advocacy is not easy, and a burden shared is lighter.”

    The challenges we have been facing for almost a decade is the ignorance of a few control freaks.

    Educating People

    As the head of ENDS Cigarette Smoke Thailand (ECST), Asa Saligupta knows that consumer advocacy can seem like a Sisyphean task. Thailand has one of the world’s strictest vape laws, enacted in 2014. In the runup to the elections, THR activists had high hopes the new administration would lift the country’s ban on vaping. However, despite gaining the most seats in the House of Representatives, the progressive Move Forward Party was blocked from forming a government by allies of the monarchy and military in the Senate.

    Yet Saligupta remains optimistic. “My humble opinion is that no matter who will win the election and who will be our next Prime Minister, the vaping ban will be lifted. One of the delegates already proposed to set up a committee to look into it, and he was supported by enough votes that this bill is already waiting in line at the parliament.”

    While anti-vaping groups like to boast about Thailand’s harsh regulations, the country has a problem with enforcement. Bribery is a big issue. “The challenges we have been facing for almost a decade now is the ignorance of a few control freaks, plus you have to admit we are living in a social media era,” says Saligupta. “We don’t have enough resources to fight them. They kept coming with blatant lies after lies, along with misinformation. Fortunately, the ban does not include possession or the act of vaping unless you vape in a no smoking area. So, for us to go out to the public and tell them that vaping is safer than smoking is not against any laws, yet.” ECST is in touch with its counterparts in the Philippines and hopes to duplicate their accomplishments. “We have talked about copying their laws,” says Saligupta.

    Even as it maintained its ban on vaping, Thailand’s Food and Drug Administration July 2022 took cannabis off its narcotics list, legalizing possession, cultivation, distribution and consumption under certain conditions. Since then, thousands of cannabis shops have opened. However, there’s little support for similarly relaxing vaping restrictions, according to Saligupta. “But of course, we can point out the harm and addiction,” he says.

    ECST has done a lot to get the ban lifted. “We attended many seminars at the parliament; we sent a petition to the Ombudsman,” says Saligupta. “Now the hearing is over, and we are expecting results soon. I also host live casts at the weekend, with more than 100,000 followers, etc. I traveled worldwide to educate people on the situation of vaping in Thailand. Our next step is to wait and see who the government will be. For what it’s worth, I think almost all parties agree that vaping should not be banned but controlled.”

    Beating a Flavor Ban

    Meanwhile, in Europe, the EU is in the process of implementing its 2021 Beating Cancer Plan and preparing to review its Tobacco Products Directive (TPD). In 2022, THR proponents rejoiced when the European Parliament for the first time recognized the THR concept with the adoption of a report by its Special Committee on Beating Cancer (BECA).

    That success can at least in part be attributed to the work of consumer representatives. “Along with our 24 partner associations, I think we played a significant role,” says Damian Sweeney, a partner in the European Tobacco Harm Reduction Advocates (ETHRA).

    “From the beginning of BECA’s mandate in September 2020, we wrote and published articles on the BECA meetings to inform consumers about what was going on. As the meetings progressed and amendments were tabled and discussed, we could see that flavors were under threat. So, along with partners, we wrote to all members of the BECA Committee on three occasions to outline the importance of flavors in the success of vaping products as a harm reduction tool.

    “Another important recommendation to come from BECA—and something we also raised with committee members—was that risk assessments should compare the use of safer nicotine products [SNPs] to smoking. Although we don’t think the final report was specific enough as it said risk assessments should compare safer nicotine products to ‘consuming other tobacco products,’ this was still a positive, as it calls into question the validity of the Scientific Committee on Health, Environmental and Emerging Risks Opinion, which compared risks [of safer nicotine products] to nonsmoking.” 

    Cooperation among consumer advocacy groups is vital, according to Sweeney. “One of the founding principles of ETHRA was to coordinate and amplify the tobacco harm reduction voice in Europe, in support of millions of nicotine consumers,” he says. “One of our biggest strengths is our partner associations and how we work together to further the goals of THR.”

    The ETHRA has recently been busy with the revised TPD, which is expected to be adopted in 2024. “We have been actively involved at every stage of the evaluation,” says Sweeney. “We’ve taken part in numerous calls for evidence, public consultations, and been invited to participate in targeted stakeholder consultations and interviews. As the next iteration of the TPD will impact millions of consumers of safer nicotine products, it is essential that consumers have a voice, and it has been our mission to ensure consumers have that voice.

    “Our message has been simple—safer nicotine products are a popular and effective means to quit smoking and are proven to be substantially less dangerous. Policymakers should consider the opportunities safer nicotine products offer in reaching smoke-free targets and be acutely aware of potential unintended consequences of prohibitive policies, such as flavor bans or high taxation.”

    Recently, the ETHRA wrote to members of the newly formed EU Subcommittee on Public Health (SANT) ahead of the presentation of the Rapporteur’s Draft Report on noncommunicable diseases (NCD). “We highlighted that ‘tobacco use’ was erroneously identified as a risk factor when it should be ‘smoking.’ We also outlined the importance of safer nicotine products in reducing smoking and NCD prevalence. During the meeting, two members of SANT, who were also in BECA, asked that the BECA recommendations on SNPs be incorporated into the final SANT report. So, I’m quietly confident that those positives will be included.” 

    By continually challenging misconceptions, promoting accurate information and participating in public discussions, consumer organizations can help shape a more informed perspective on vaping and other harm reduction strategies, ultimately influencing policy decisions in favor of public health and individual choice.

    Valuable Lessons

    So what can consumer organizations in other countries learn from their colleagues in the EU, the Philippines and New Zealand?

    “For me, political engagement is one of the most important parts of advocacy,” says Sweeney. “I would encourage other consumer groups to get in contact with their representatives at local, national and EU level to make them aware of the importance of tobacco harm reduction. It’s also important to participate in consultations when restrictive policies on safer nicotine products have been proposed. And, if you are part of a consumer group that is independent of industry, I’d highly advise joining ETHRA as a partner.”

    “Consumer organizations from other countries, like India [which prohibits vaping], can draw valuable lessons from the Philippines’ experience in vaping advocacy,” says Dator. “One takeaway is the importance of unwavering persistence in fighting against misinformation and advocating for harm reduction alternatives. The Philippine example shows that even small efforts, when consistently carried out by a collective of dedicated vaping advocates, can create a significant impact over time. By continually challenging misconceptions, promoting accurate information and participating in public discussions, consumer organizations can help shape a more informed perspective on vaping and other harm reduction strategies, ultimately influencing policy decisions in favor of public health and individual choice.”

    Loucas reminds consumer groups that elected officials work for them. “They should approach them with respect and integrity and present facts—but most importantly, their testimony,” she says. “Humanize the issue.”

  • COP10 Postponed

    COP10 Postponed

    Photo: Maksym Yemelyanov

    The Tenth session of the Conference of the Parties (COP10) to the WHO Framework Convention on Tobacco Control (FCTC) and the Third session of the Meeting of the Parties (MOP3) to the Protocol to Eliminate Illicit Trade in Tobacco Products have been postponed to 2024.

    “Following communication received from Panama, the host country of the Tenth session of the Conference of the Parties to the WHO Framework Convention on Tobacco Control  and the Third session of the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products, it is no longer possible to conduct COP10 and MOP3 in November 2023, as scheduled,” the FCTC wrote on its website.

    The sessions are expected to be held in Panama, as early as possible in 2024, at dates to be confirmed.

    The postponement of COP10 and MOP3 is due to the current security situation in Panama, which has been shaken by mass protests about a government contract that allows a Canadian company to expand its copper mining operations there.

    The Convention Secretariat said it will communicate further details in relation to COP10 and MOP3, as soon as available.

  • KT&G Reports Record Revenue

    KT&G Reports Record Revenue

    Photo: Taco Tuinstra

    KT&G reported record revenue of KRW1.69 trillion ($1.29 billion) for the quarter that ended Sept. 30, 2023. This reflects a 4 percent increase from the same quarter last year. Operating profit rose 0.3 percent to KRW406.7 billion despite cost headwinds.

    Solid performance in combustible business drove the revenue growth as the company’s total combustible revenue, including both overseas and domestic sales, jumped to KRW972.7 billion, a 3 percent increase year-on-year. Operating profit from combustible products recorded KRW269.4 billion, up 0.6 percent year-on-year.

    Overseas combustible business delivered impressive growth across all key metrics, including sales volume and revenue. KT&G’s overseas combustible revenue increased 26.3 percent to KRW321.6 billion, and the sales volume recorded 14.82 billion sticks, up 21 percent year-on-year. The double-digit growth in revenue and sales volume of overseas combustible products was mainly driven by strategic pricing and combined growth across export and overseas subsidiary volumes.

    The heat-not-burn business also recorded a double-digit increase in both domestic and overseas sales figures. KT&G sold 1.45 billion sticks in the domestic market and 2.03 billion sticks in overseas markets, which represents 13.3 percent and 22.3 percent growth year-on-year, respectively.

    In the third quarter, KT&G’s primary focus was on enhancing its financial performance by strengthening the global competitiveness of its core business areas. As part of the effort, KT&G made significant investments in Indonesia and Kazakhstan in September and October.

  • Sales Down at Scandinavian Tobacco

    Sales Down at Scandinavian Tobacco

    Niels Frederiksen | Photo: STG

    Scandinavian Tobacco Group (STG) delivered 3.9 percent negative net sales growth, an EBITDA margin of 26.5 percent and a free cash flow before acquisitions of DKK622 million ($89.36 million) for the third quarter of 2023. For the first nine months of 2023, net sales decreased by 1.8 percent to DKK6.5 billion, the EBITDA margin was 24.6 percent and the free cash flow before acquisitions was positive by DKK602 million.

    Consumer trends for the cigar categories remained unchanged throughout the third quarter, according to STG. Decreasing volumes were partly offset by pricing and increasing sales from growth enablers, such as retail stores, next-generation products and international sales of handmade cigars.

    STG anticipates net sales growth to recover in the fourth quarter, primarily as a result of the positive trend in North America online and retail, along with growth in Europe and comparison to a soft fourth quarter last year. The EBITDA margin is expected to be somewhat lower than in the fourth quarter last year as a result of category and country mix combined with higher investments in the growth enablers and in stabilizing the market share development in Europe branded. The main uncertainties to the full-year expectations remain the volume development in Europe branded and inventory adjustments with customers in the U.S.  

    STG’s board of directors has approved a share buyback program of up to DKK850 million running to the end of February 2025. “With the performance in the third quarter, we are on track to deliver on our revised guidance from August with both cash flow and margin recovering in the quarter,” said CEO Niels Frederiksen in a statement.

    “Although key uncertainties persist, we continue to make good progress in the online business, and the growth enablers are also performing well. Whereas the market share for Europe branded continued to decline, we remain confident that the more aggressive initiatives launched over the past few months will support a stabilization.”

  • Malawi Devalues

    Malawi Devalues

    Photo: Africa

    Malawi is devaluing the kwacha’s by one third.

    In a notice to authorized dealer banks seen by Reuters, the country’s central bank said the kwacha’s exchange rate to the U.S. dollar would be adjusted to MKW1,700 from MKW1,180.

    The southern African country has been struggling with dwindling foreign currency reserves due in part to declining revenue from tobacco exports.

    Malawi earned $282.62 million from tobacco sales during the 2023 marketing season. While this figure was up substantially from the $182.12 million generated by sales of the golden leaf in the previous season, it is not nearly enough to alleviate the nation’s trade imbalance.

    In 2020, Malawi’s import bill was $2.8 billion, versus exports of only $800 million, according to the National Statistics Office.

    Depending on the season, tobacco accounts for between 40 percent and 70 percent of Malawi’s export earnings. To reduce its heavy reliance on a single commodity, the country has been working to diversify its economy by developing supplemental value chains, such as mushrooms, bananas and groundnuts.

  • Alternatives Boost Cessation: Tholos

    Alternatives Boost Cessation: Tholos

    The Tholos Foundation, in partnership with Japan-based Pacific Alliance Institute and Sweden-based consulting firm Scantech Strategy Advisors, has released a policy paper, Safer Nicotine Works, on how Sweden and Japan have successfully reduced smoking rates by introducing safer alternative nicotine products.

    Safer Nicotine Works investigates oral nicotine and heated tobacco’s effects on smoking rates in Sweden and Japan. It follows Vaping Works, which studied four countries’ vaping experiences. The latter found that nations adopting vaping, like the United Kingdom, France, Canada, and New Zealand, experienced smoking rate reductions at double the global average.

    In Japan, the introduction of heated tobacco products has remarkably reduced male smoking rates below 30 percent for the first time, reversing previous stagnation.

    Sweden, with a smoking rate of 5.6 percent 1 is poised to be “smoke-free” within the year. The recent decline in smoking is attributed to the rise of nicotine pouches introduced in 2019.

    Tholos Foundation’s research indicates consumers in both countries led the shift to safer alternatives. Policymakers’ key role was to ensure these alternatives were accessible and viable. Data confirms that safer nicotine significantly aids smoking cessation. With safer nicotine products like vaping, heated tobacco, nicotine pouches, and snus, smoking rates are dropping rapidly.

    “Safer nicotine is, quite literally, saving lives around the world,” said Tholos Foundation Vice President Lorenzo Montanari in a statement. “The experience of Sweden and Japan, just as in the U.K., Canada, New Zealand and France, proves that when people have access to safer products, they choose them in huge numbers. We now have the tools we need to fight harmful high smoking rates: governments around the world must now support their citizens to make a better choice.”

    According to the Tholos Foundation Sweden and Japan’s success in lowering smoking rates highlights the efficacy of comprehensive tobacco control strategies. “They have regulated alternative nicotine products, prioritizing public health,” the organization wrote in a press note. “Sweden and Japan’s experiences provide key lessons for nations aiming to decrease smoking and encourage smoke-free alternatives. By enabling access to safer alternative nicotine products and implementing appropriate regulations, countries significantly improve public health outcomes and address smoking.”

  • Activists Advise ‘Sensible’ Policies

    Activists Advise ‘Sensible’ Policies

    Photo: lemanieh

    The U.K. emphasis on creating a smokefree generation may be misguided considering that regular underage smoking has already reached an all-time low, according to critics.

    The government is actively pursuing its plan to create a tobacco-free generation through the introduction of the Tobacco and Vapes Bill, presented in the King’s Speech to Parliament on Nov. 7. This initiative, revealed in October, is particularly contentious as it proposes a complete prohibition on legal access to cigarettes for individuals under the age of 15. In addition to this, the bill introduces the possibility of implementing new taxes and restrictions on vaping, signaling an effort to combat youth vaping.

    The government’s strategy involves a multifaceted approach, including a public consultation on youth vaping launched on Oct. 12. This consultation is open to U.K. residents of all ages, encouraging input from “teenagers, parents, teachers, medical professionals, academic experts and others” until Dec. 6. The overarching goal is to address youth vaping while still supporting adults in their efforts to quit smoking.

    Writing in Filter, Kiran Sidhu spoke to several tobacco harm reduction advocates, some of whom suggested the government should prioritize reducing adult smoking, especially in economically disadvantaged communities where smoking rates are higher.

    One of the key points of contention in the proposed bill is the potential ban on disposable vapes. While some advocate for such a ban, citing environmental concerns and youth use, others argue that it may have unintended consequences. Disposable vapes are favored by adults seeking to quit smoking due to their accessibility, ease of use and lower cost. A ban on disposables could disproportionately impact disadvantaged groups and potentially slow down the overall decline in smoking rates.

    The government’s public consultation has garnered mixed responses on social media, with some perceiving it as a response to public outcry over a perceived youth-vaping crisis. Skepticism exists regarding the impact assessment process, with concerns that it may selectively support proposed restrictions while disregarding opposing views.

    Amidst the debate, the director of an online vape retailer emphasizes the importance of responsible regulation. He suggests that listening to the experiences and insights of vapers, alongside input from scientists and professionals working with smokers, will lead to sensible regulations that prioritize harm reduction.

    Previously hailed as a global example of successful tobacco harm reduction through vaping, the U.K. must now find a balance between addressing youth vaping, environmental impact and supporting adults in their journey to quit smoking. The outcome of the public consultation will significantly shape the future regulatory landscape for tobacco and vaping products in the U.K.

  • Stronger Enforcement Urged of Violations

    Stronger Enforcement Urged of Violations

    Photo: momius

    The U.S. Food and Drug Administration could take stronger enforcement action against tobacco retailers with histories of sales to youth and other violations, according to a report published by the Office of Inspector General (OIG) of the Department of Health and Human Services.

    The authors analyzed the extent and nature of the FDA’s inspections of, and enforcement actions against, vendors occurring over nearly a decade through the agency’s tobacco retailer compliance check inspection program.

    The OIG found the FDA conducted more than 1 million inspections from 2010 through 2019, by inspecting, at least once, 74 percent of tobacco retailers that were in business nationwide as of 2020. The FDA almost always returned to inspect retailers where it found violations within 12 months. In some States, inspection activities were correlated with neighborhoods’ socioeconomic conditions, raising questions about how FDA and its contractors select retailers to inspect.

    Overall, FDA’s actions against retailers that violated tobacco laws and regulations were in accord with its policies.

    However, retailers with histories of violations were often not subject to the strongest enforcement actions. FDA collected the full amount for only 9 percent of the civil money penalties (CMPs) it issued to retailers with histories of violations compared to 60 percent of CMPs it issued to retailers with fewer violations. Also, retailers in our sample that could have been subject to a no-tobacco-sale order usually did not receive one.

    However, the OIG did not determine the extent to which FDA’s consideration of mitigating factors or actions by Administrative Law Judges played a role in these outcomes.

    In its report, the OIG recommends that FDA give greater weight to retailers’ past noncompliance when taking enforcement actions against retailers with histories of violations, and determine whether variation in inspection activity on the basis of neighborhoods’ socioeconomic status is appropriate and the extent to which it is meeting FDA’s objective for protecting vulnerable populations.

  • Zimbabwean Farmers Bemoan Power Cuts

    Zimbabwean Farmers Bemoan Power Cuts

    Photo: Taco Tuinstra

    Power cuts  in Zimbabwe are impacting irrigation and increasing tobacco farmers’ production costs, reports The Herald, citing Zimbabwe Tobacco Association (ZTA) CEO Rodney Ambrose.

    “Power outages from about 0500 hours in the morning to as late as 2200 hours are a major concern in most growing areas at the moment,” Ambrose was quoted a saying. “Growers are struggling to complete their irrigation cycles and are relying on diesel powered generators, incurring huge costs.”

    Ambrose said the crop quality, yield and grower viability would likely be compromised as the option of running generators for irrigation is not sustainable. With curing of the irrigated crop scheduled to start in early December power demand will increase further.

    “We are engaging with the power utility to identify clusters where power supply can be prioritized just like they did for the wheat program. However, if power deficits persist nationally, the cluster solution may not entirely resolve the issue. The next option is to plead with the government to provide subsidized diesel or allow duty free imports of fuel primarily for powering generators,” said Ambrose.

    Ambrose believes the long-term solution is for farmers to transition to solar power although this has a costly outlay that requires growers to have access to long term financing.

    It will also require the government to permit duty-free and tax-free imports of solar equipment for farming activities, he added.

    Tobacco farmers have planted 22,298 hectares this season, including 16,962 hectares of irrigated tobacco, according to the Tobacco Industry and Marketing Board.

    The report said 105,805 growers had been registered so far compared to 133,724 registered growers during the same period last year, marking a 26 percent decline.

  • Track-and-Trace Honored in the Breach

    Track-and-Trace Honored in the Breach

    Image: alien185

    Only two out of the more than 40 cigarette manufacturers in Pakistan have properly implemented the country’s track-and-trace system, according to British American Tobacco, reports The Nation.

    Speaking during a media briefing organized by the Pakistan Tobacco Company (PTC) in Islamabad, BAT’s area head of legal and external affairs for the Asia Pacific, Middle East and Africa regions, Mona Iskandarani, stressed the importance of timely implementation and enforcement of the track-and-trace system.

    “We acknowledge the recent enforcement initiatives undertaken by the Federal Board of Revenue in Pakistan but we need sustained enforcement efforts across the supply chain to curb the menace of illicit cigarette trade in Pakistan,” said Iskandarani.

    PTC’s legal and external affairs director, Asad Shah, pointed out that while track-and-trace systems have been implemented in various countries, the system does not offer a silver bullet. Rather, it serves as a tool to facilitate law enforcement agencies to carry out raids and seizures of tax evaded products, he said.

    Despite a lapse of 15 months since the implementation deadline, only two out of over 40 cigarette manufacturers have implemented the track-and-trace in true letter and spirit, Shah lamented. Instead of declining, tax evasion has grown in the tobacco sector since the system became mandatory, he said.

    The share of illicit cigarette sales is projected to grow from 37 percent of the market in fiscal 2021-2022 to approximately 63 percent by the end of fiscal 2023-2024, potentially causing the government lose PKR310 billion ($1.08 billion) in tax revenues in fiscal 2023-2024.