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TOBACCO NEWSFebruary 13 - February 27, 2017

INDIA NEWS

New Delhi: GST Rate On Tobacco Products To Be Discussed Post March MeetEven as the Indian Finance Minister Arun Jaitley is beingcalled on to impose the highest 28% GST on all tobaccoproducts, including bidis, and placing the products inthe demerit good category, with an additional cess overand above the highest tax rate, the much awaited Goodsand Services Tax (GST) Council meeting on February18th, 2016, formally approved a Bill for compensatingthe State governments for any revenue loss that mightensue in the first five years of the GST regime. At the10th meeting held at Udaipur, Rajasthan, the Councilproposed to fund the compensation through a clutch ofcesses, including the extent clean energy cess and theimpost on tobacco. Public health groups are

recommending that all tobacco products be taxeduniformly, at equal rates to prevent switching from ahigher priced product to a lower, cheaper form oftobacco. The Finance Minister clarified that the fitmentof items under the four-tier (5%, 12%, 18% and 28%)rate structure, in keeping with the principles of revenueneutrality (for the government) and ensuring minimalinflationary impact, is likely to take place at the 12thsession of the Council, although a technical committeehas already made considerable headway in this regard.The Council is expected to hold the next session in NewDelhi on March 4-5th. The government has set a July1st, 2017, deadline for ushering in the GST regime.

New Delhi: Tobacco Board May BeMerged With Other Commodity BoardsThe Indian Commerce Ministry is deliberating merging fiveof the commodity boards under its purview, including theTobacco Board, those of the tea, coffee, rubber and spices.The Ministry’s plan is aimed at setting up an umbrellaorganization in an effort to improve agricultural exports andprovide better services. While tobacco, tea, coffee, rubberand spices are seen as having the potential to play animportant role in the country’s economic growth, demandand price levels have affected shipments of some of theseproducts lately. The Ministry has asked exporters to explorenew markets in a bid to boost agricultural commodity trade,

and is also emphasizing offering for export value-addedproducts.

Punjab: Curb On Chewing TobaccoExtendedThe Punjab government has extended by another yearthe ban on chewing tobacco and other edible productscontaining tobacco and nicotine in the State. Thenotification covers the manufacture, storage, sale anddistribution of gutkha, pan masala and other processed,flavored and scented food products containing tobaccoor nicotine as ingredients and whether packaged orunpackaged or sold as one or as separate products.

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TOBACCO NEWS

Rajasthan Health Minister Kalicharan Saraf noted onFebruary 17, 2017, that the State government does notintend to impose a complete ban on tobacco products asit would not be feasible. He further added that prohibitingtobacco by just one State would be “foolish” as it wouldlead to revenue loss as well as fuel contraband tobaccotrade. Tobacco if outlawed, should be at the nationwidelevel, the Minister pointed out, while addressing the mediafollowing a visit by a Sri Lankan delegation that had cometo observe the efforts made by the administration in

Rajasthan: Foreign Delegation In State To Study Implementation Of TobaccoAct

controlling tobacco consumption in the State. And theimplementation of the Cigarettes and Other TobaccoProducts Act (COTPA), 2003. The Minister’s comments,however, drew flak from the Opposition as well as tobaccoactivists. Aam Aadmi Party (AAP) leader Virendra Singhsaid Rajasthan was the first State to bar gutkha and hadwon praise for the steps to curtail tobacco use. PawanSinghal, patron of the Voice of Tobacco Victims,underscored the need for the government to enforce heavytaxes on tobacco to discourage use and earn more revenue.

WORLD HIGHLIGHTS

NORTHERN AMERICA

Two US Republican Congressmen, Tom Cole (Oklahoma)and Sanford Bishop (Georgia) have regrouped efforts andintroduced legislation in the House of Representatives onFebruary 16th, 2017, to amend the U.S. Food and DrugAdministration’s (FDA) deeming regulations to help easerestrictions around new tobacco products and vapingdevices. The Federal Food, Drug and Cosmetic Actimposes licensing and advertising guidelines for vaporapparatus and directs the FDA to establish productstandards for vapor-product batteries. The Congressmenseek to change the predicate date for new tobaccomerchandize - the February 15th, 2007 threshold for

tobacco products to avoid new, burdensome scrutiny, andthe prohibitively expensive approval process as well asunveil other vaping-related initiatives. Dubbed the Cole-Bishop Amendment, the measure got off track last yearwhen US lawmakers failed to pass a Budget in fall,deferring the process until this spring. The new bill, theFDA Deeming Authority Clarification Act of 2017, restartsthat effort to push the predicate date to the 2016 date.Which otherwise could hurt small and medium-sized e-cigarette businesses since almost all vapor products enteredthe market after February 2007, to the benefit of majortobacco companies that can afford to comply with the FDA

US: Efforts In Congress To Change FDA Predicate Date For Vaping Products

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TOBACCO NEWSrules. “This legislation would ensure the FDA’s regulatoryprocess does not limit the availability of safer tobaccooptions for those seeking to make use of them,” Bishopsaid.

US: International Trade AgreementsBlamed For Struggling Tobacco AcresWith more international trade deals writing out tobacco,leaf production in countries that depend on tobaccoexports, such as the US, particularly the State ofKentucky, are struggling to sustain the crop. Tobaccois one crop fighting to keep acres, Ryan Quarles,Kentucky Agriculture Commissioner, said. Trade dealscontinue to scrap tobacco from the mix, taking its tollon acres in the Bluegrass State, Quarles said, adding,“At our peak, we had 85,000 different tobacco farms.Now, we have 4,500 people engaged in raisingtobacco.”

US: Connecticut Could See HigherCigar, Cigarette Duties, MinimumTobacco NormThe Connecticut General Assembly is examining a rangeof tobacco bills by Gov. Dannel P. Malloy, seeking toincrease the State’s cigarette levy, from US$1.95 toUS$2.17 per pack, as well as on snuff, and have thecurrent tax cap on cigars raised from US$0.50 toUS$1, that are part of the Budget plan. The Assemblyis also deliberating lifting the minimum age to procuretobacco products, under H.B. 5384, filed by StateRepublican Rep Prasad Srinivasan (District 31) andco-sponsored by fellow Republican Rep. Gary Byron(R-27th).

US: Florida Lawmaker AdvocatesMaking Smoking Illegal For Under 21sFlorida State Senator Democrat Darryl Rouson wants tomake it illegal for teenagers in the State to purchasecigarettes or other tobacco products. The statute currentlypermits the sale, barter, delivery, and gift of tobaccoproducts to those 18 and over. The bill would up the age to21 years.

US: Idaho May Boost Tobacco BuyingCriterionA proposal in the Idaho Senate is looking to ramp up theauthorized threshold to buy, possess as well as use tobaccoproducts and alternative nicotine delivery products to 21years. The bill, S.B. 1106, unveiled by Boise RepublicanSenator Fred Martin will steeply bolster fines for any persontrying to use a fake identification to obtain tobacco, whileretailers will continue to be penalized and could see salespermits suspended for marketing to an underage person.

US: Kansas Governor’s Bid To IncreaseCigarette Charges NixedKansas Republican Governor Sam Brownback’s Budgetplan, put forth to lawmakers last month, which would haveincreased duties on alcohol, cigarettes and tobaccoproducts, was rejected in the GOP-controlled committee.The House and Senate tax committees, nevertheless,forwarded on February 23rd separate drafts containingBrownback’s tax schemes to their Chambers withoutendorsing them, even though they do not have muchsupport. The Governor also opted to sell off tobaccosettlement funds to make it through projected Budgetshortfalls.

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TOBACCO NEWSUS: Move To Hike Cigarette, OtherTobacco CostsCigarette and other tobacco product costs could go up inthe State of Montana under a measure by Senator MaryCaferro (D-Helena), aiming to hike the excise on cigarettesby US$1.50 to US$3.20 a pack, and by similar amountson smokeless tobacco products and impose a new fee one-cigarettes. Montana’s current cigarette charge is US$1.70a pack, and has not been revised since 2005. The nationalaverage cigarette rate is US$1.63 per pack. About US$44million revenue is expected to be generated following theuptick, and would help fund home health care, hospice andother critical healthcare programs that are facing deep cutsthis year. In a separate move, Democratic Governor SteveBullock will be proposing to boost cigarette levy by 50 centsa pack, along with parallel rises in smokeless tobacco anda new payment on e-cigarettes. The bill has not beenpresented yet, but estimates from the governor’s officeexpect it would bring in US$23.6 million in general fundover three years and US$30.7 million in various State specialrevenues.

US: New Age Restrictions On TobaccoSales In NebraskaOmaha State Senator Merv Riepe has introduced aproposition to enhance the legal age in Nebraska to purchasecigarettes and other tobacco products including vapingdevices. LB 73 would make it illegal to sell productscontaining nicotine to anyone under the age of 21. SenatorRiepe believes 18 year olds can buy cigarettes and othertobacco products for younger friends. But 21 year olds havelittle contact with high school age students so this would bea side benefit to advance the authorized tobacco age.

US: Cigar Tax Defeated In NewHampshireIn New Hampshire, an initiative that intends to removethe exemption for premium cigars from the State’s tobaccotax law and add a 65% duty of the wholesale price wasdefeated with many politicians from both sides votingagainst it. Additionally, HB 175 passed last week whichchanges the definition of a cigar bar. Cigar shops cannotallow cigarette smoking or food to be sold on thepremises. And all cigar bars must have tobacco sales of60% of their total business in order to continue servingalcohol regardless of their annual sales.

US: West Virginia Looks To LiftTobacco Purchase Permit To 21Three State Senators in West Virginia, Sen. Ron Stollings(D-Madison) and co-sponsors Sens. Glenn Jeffries, (D-Red House), and Robert Beach (D-Morgantown), havelaunched a bid to set a higher minimum age to obtaintobacco products as well as alternative nicotine deliverydevices from 18 to 21-years. Senate Bill 37 would retainthe existing fine structure in place for retailers or otherswho violate the regulation and also provides a clause thatlets an employer automatically expel an employeeproviding tobacco to an underage person.

Canada: Government Launches PublicConsultation On The Future OfTobacco Control In CanadaThe Federal Government of Canada launched onFebruary 22nd, 2017, a 7-week public consultation onthe future of tobacco control in Canada to renew theFederal Tobacco Control Strategy. The strategy seeks

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TOBACCO NEWSto cut Canada’s tobacco prevalence to less than 5% by2035. The consultation will run until April 13, 2017, andwill focus on adopting stringent plain packaging for tobaccoproducts, banning the use of menthol in cigarettes, bluntwraps and most cigars, and the introduction of new vapinglegislation. Health Canada is also considering raising theauthorized age to purchase tobacco to 21. The consultationpaper will serve as a basis in leading discussions with thepublic as a whole, as well as participants at the NationalForum on the Future of Tobacco Control in Canada whichwill take place February 28 to March 2, 2017.

Canada: British Columbia Govt.Ordered To Provide Data In PhilipMorris CaseIn Canada, the provincial government of British Columbiahas been ordered to provide tobacco giant Philip MorrisInternational with information about patients in theprovince’s case to recover alleged health-care costs from

tobacco manufacturers. In a unanimous decision, the B.C.Court of Appeal upheld a lower court verdict that PhilipMorris be given access to the raw data used by the provincein the 2001 filing of the lawsuit against 13 tobaccocompanies. The B.C. government had argued the raw datacontains health-care information about specific patients andthat its release could violate privacy laws. But the Courtdismissed the government’s stand, saying any identifyinginformation may be removed. The judges ruled that theinformation is essential to proving causation and damages,and withholding those details from the tobacco firms would“tip the playing field unfairly in the province’s favor.” B.C.Health Minister Terry Lake said the province would studythe ruling before deciding whether to appeal the judgmentto the Supreme Court of Canada. The administration islooking to recover billions of dollars it spent treating healthrisks linked to use of tobacco products. Imperial TobaccoCanada, R.J. Reynolds Tobacco and RothmansInternational Research Division, are among the businesses.

EUROPE

Czech Republic: Czech PresidentEndorses Smoking LawThe President of the Czech Republic Milos Zeman signedinto law on February 14th, 2017 a ban on smoking in bars,restaurants and cafes. The regulation was approved byboth Houses of Parliament last year. The restrictions covermovie theaters, concert venues, exhibition halls and indoorsports, and none will be allowed to have separate rooms

for smokers. The legislation comes into effect on May 31,2017, the World No Tobacco Day.

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TOBACCO NEWS

November 14

Russia: Electronic Cigarettes, HookahBlends May Face ConstrainsRussia’s Consumer Protection Agency, Rospotrebnadzoris reportedly mulling restraining tobacco blends used inhookahs and vaping devices. The agency believes thesmoking mixtures should be prohibited, at least until rulesare strengthened to check the use of electronic nicotinedelivery systems (including hookah), as well as mixtures usedin these devices. Rospotrebnadzor is also backing action tocurtail the use of electronic smoking products. Experts areconcerned that the growing appeal of electronic cigarettesand nicotine vaporizers could undermine long-term effortsto combat smoking among the young and popularize nicotineuse.

Slovenia: Govt. Approves RulesMandating Plain Packaging, ForbidsMarketingThe Slovenian Parliament passed on February 15th, 2017 alaw enforcing plain packaging for cigarettes and tobaccoproducts and clamping down on tobacco advertising andpromotion. The brand free packs will take effect from 2020.The bar on ads will also apply to products on television andat public events aimed at under-18s. Almost a quarter ofcitizens between the ages of 15 and 64 smoke in the country.

Spain: JTI Signs Three Year LeafTobacco AgreementGlobal cigarette corporation Japan Tobacco Internationalhas inked an agreement with the Spanish Ministry ofAgriculture committing to continue the purchase of leaftobacco from the western region of Extremadura. The three-year pact was signed by Minister Isabel García Tejerina

and JTI’s President of the Western Europe region, VassilisVovos on February 21st, 2017. JTI operates the biggesttobacco manufacturing plant in Spain where it producesglobal brands Camel and Winston, and employs morethan 750 people in the state-of-the-art factory, andcommercial offices. The tobacco sector is said to sustainmore than 61,000 direct and indirect jobs in Spain.

Sweden: Swedish Match ReportsRobust Earnings For 2016Leading snus and snuff producer Swedish Match ABoutlining the business results for 2016, announced anincrease in sales in all product areas of 6% for the fourthquarter to SEK3,957 million and by 7% to SEK15,551million for the full year 2016. Profit for the October-December 2016 quarter rose to 662 MSEK and surgedto 5,123 MSEK (2,803) for the year. Basic earnings pershare amounted to SEK3.61 during the quarter andSEK27.38 for the year. The Stockholm headquarteredconglomerate, that successfully listed STG on the Nasdaqand the Copenhagen Stock Exchange in February, andsubsequently sold a significant portion of the shareholding,said 2016 operating performance was driven by a verysuccessful year for cigars in the US. The Garcia y Vegaand White Owl maker’s US cigar shipments in 2016, at1,472 million smokes, jumped 17% year-on-year from1,256 million in 2015. The manufacturer of the Generalsnus brand reported growth in both snus and moist snuffbusiness. Market in Scandinavia snus slowed in Q4, butwas strong during the 12 months to the end of December,at 241.3 million cans, up 2% on the year to December2015, 236.3 million cans. Despite the upswing in volumes,SM’s share of Sweden’s snus market fell by 1.6percentage points, from 69% during 2015 to 67.4% in2016. And was down in Norway by 3.1 percentage points

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TOBACCO NEWSto 53.5%. Moist snuff operations dipped marginally in theUS by 1% during 2016, at 131.4 million cans. Chewingtobacco faced a challenging year, the Red Man brandowner said, excluding contract manufacturing, volumes, at6,709,000 pounds, decreased 9% from 7,390,000pounds. Although the matches division improved sales inthe October-December quarter, the matches and lightersunits witnessed a slump in worldwide shipments, of matchesduring 2016, at 72.0 billion sticks, by 2%, while that oflighters dropped by 1% from 402.9 million to 399.2 millionpieces.

United Kingdom: British AmericanTobacco 2016 Volumes, Profits Up, ToGrow Multifold Next GenerationProductsWorld’s No.2 cigarette maker British American TobaccoPlc. posted on February 23rd, 2017 a rise in full-year 2016profit before taxation of £6.245 billion from £5.855 billionin 2015. Adjusted earnings per share were at 247.5 pence,compared to 208.4 pence a year ago. Revenues for thefull year climbed 12.6% to £14.751 billion. Volumes duringthe 12 months to December-end 2016, at 665 billion, wereup by about 0.2% from the year before 663 billion. Salesexpanded in the Eastern Europe, Middle East and Africaregion, from 229 billion to 236 billion, and in WesternEurope from 112 billion to 120 billion, but declined in theAmericas from 124 billion to 113 billion, and in the Asia-Pacific region from 198 billion to 196 billion. Shipments ofthe Global Drive Brands (GDB) grew by 7.5%, nowaccounting for 49% of group cigarette volume. Top brand,Dunhill’s market slipped by 3.3%, mainly owing toindustry turn down in Malaysia and Brazil, more thanoffsetting growth in South Korea, Romania and inIndonesia. Kent and Pall Mall were marginally higher, the

latter driven by the business in Venezuela, Poland, Mexicoand Romania. Rothmans’ cigarettes saw a huge 36.9%surge in volumes, due to migration, and on the brand’sperformance in Russia, Ukraine, Italy, Nigeria, Turkey andSouth Korea. Lucky Strike market was up by 13.5%.The company’s other international brands plunged by 9%,as the market for State Express 555 and Craven A (inVietnam) was more than offset by lower sales from PeterStuyvesant (in South Africa), JPGL (largely in SE Asia),and Vogue. Innovations products swelled by 12%, on thesuccess of tube filters, capsules and the slimmer formatsacross the GDB portfolio, BAT said. BAT’s tobaccovolumes, in cigarette stick equivalents, during 2016, at 689billion were unchanged from those of 2015. BAT stated itsvapor business is now the largest in the world outside theUS, following the achievements of the Vype brand, withpresence of almost 40% of the market in Britain and around50% in Poland. It is planning rapid expansion of the“vaping” business, targeting to quadruple the number ofmarkets of its “next generation” products. Currently BAThas launched e-cigarettes and vaping products in 12markets and intends to double that in 2017, and ramp thatup to 48 in 2018. BAT expects to close the ReynoldsAmerican Inc. transaction in Q3 2017, subject to obtainingthe relevant approvals.

United Kingdom: BAT To Exit DunhillCigars, Pipe Tobacco BusinessCigarette giant British American Tobacco (BAT) announcedthat it is likely to discontinue the supply of handmadeDunhill cigars and pipe tobacco as of mid-2018. Theproducts make up a very small part of the overall business,BAT said, adding that the move is part of the policy tocontinually review and refine the global strategy to ensurebusiness sustainability. Dunhill cigars are distributed by

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TOBACCO NEWSGeneral Cigar in the United States and are made atGeneral’s factories in Honduras, Nicaragua and theDominican Republic. For the time being, General said theDunhill cigars, whose history dates back to 1907, theyear Alfred Dunhill opened a tobacco shop in London,will continue to be rolled and marketed as usual, at least

until 2018. The announcement comes just weeks after BATrevealed it is acquiring US tobacco group ReynoldsAmerican Inc. for US$49.4 billion. Modern Dunhillsinclude Dunhill Signed Range, 1907 by Dunhill, DunhillAged Cigars, and Heritage by Dunhill.

ASIA & OCEANIA

Philippines: Manila Mayor OutlawsSmoking At Public PlacesThe Mayor of Manila, Joseph Estrada, imposed onFebruary 13th, 2017, curbs on smoking in public placesincluding the city hall in the national capital. The regulation,brought in through City Ordinance 7748, is said to emulatethat introduced in Davao City by President RodrigoDuterte, who was Mayor for 22 years. At the Manila townhall, located in the Ermita district, smoking will be allowedonly at two gates, and violators of the ordinance will bearrested by city hall employees. An Executive Order on anationwide smoking ban is still awaiting President Duterte’ssignature. Around 17 million people, or nearly a third ofthe adult population, smoke in the Philippines — the secondhighest in the region after Indonesia — according to a 2014report by Southeast Asia Tobacco Control Alliance.

Philippines: BIR To Upgrade Tax StampSecurity FeaturesThe Bureau of Internal Revenue (BIR) of the Philippinesis considering revamping the security features of theexcise tax stamps to address the proliferation ofcounterfeit stamps in the tobacco industry. DeputyCommissioner Jesus Clint O. Aranas said the BIR islooking to improve the security features rather thanlaunching new designs for the duty stamps. The BIR isset to take proactive measures to plug revenue leakages,worth around P10 to P15 billion. Commissioner CaesarR. Dulay also plans to meet with industry representativesto discuss the proliferation of fake tax stamps.

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TOBACCO NEWSAustralia: Philip Morris’ iQOS UnlikelyTo Debut In AustraliaTop cigarette multination Philip Morris International Inc. isfacing major regulatory hurdles with regard to its smoke-free future plans, to introduce the iconic iQOS product inAustralia. The company is reportedly working through“regulatory issues” with a view to debut the “no-smoke”cigarette in the country, possibly by April. But Australia’sAssistant Health Minister, David Gillespie, however, saidthat PMI was unlikely to obtain permission to sell the newcigarette under current regulations. The commercial supplyof nicotine is effectively prohibited in Australia by Stateand territory poisons legislation, with some exceptions, suchas for tobacco prepared and packed for smoking, andcertain nicotine replacement therapies. Besides, Australia’sTherapeutic Goods Administration also recently retainednicotine on the poisons list, and the decision bans e-cigarettes, or vaporizers, containing nicotine. The new heatnot burn product, which Philip Morris says has cost themajor US$3 billion in research and development over thepast decade, has already been barred in New Zealand.The New Zealand Ministry of Health notified Philip Morrisearly this month that “heated not burned” products areoutlawed under a section of the Smoke-Free EnvironmentsAct because they contained tobacco for oral use. TheEuropean Union also issued a statement in January urgingcaution towards the product, saying there was a lack ofevidence about alleged short and long-term health effects.Russian authorities are also reportedly opposed to theproduct.

Papua New Guinea: New TobaccoControl Act In ForceA comprehensive law intended to regulate the manufacture,imports, distribution, sale and use of tobacco products,the Tobacco Control Act 2016, took effect in Papua NewGuinea on February 22nd, 2017. The 2016 Act replaces a3 decade old rule, and includes strict controls on advertisingand the size of cigarette packets and packaging of loosetobacco, Health Secretary Pascoe Kase said. The Actgrants power to the Governor General to set the dates thevarious parts of the Act come into operation, while grantingtime for companies to prepare for the change.

Vietnam: Tobacco Import Quota SetFor EAEU CountriesVietnam has decided to limit the imports of ‘tobaccomaterial’ from the Eurasian Economic Union (EAEU)countries - Armenia, Belarus, Kazakhstan, Kyrgyzstanand Russia, under the Vietnam-EEU Free TradeAgreement. The Ministry of Industry and Trade revealedit would apply import tariffs and quotas for tobaccomaterial from EAEU Member States, of 500 tons oftobacco, for the next three years, starting March 14th,2017, to December 31st, 2019.

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TOBACCO NEWS

AFRICA

Kenya: Court Upholds TobaccoLabeling In BAT Lawsuit, LegislationTakes Immediate EffectThe Appellate Court in Kenya upheld the lawregulating tobacco and requiring warning labels andgraphic images on cigarette packing. Three Courtof Appeal judges dismissed on February 17 th, 2017,a plea by cigarette major British American TobaccoLtd, ruling the Tobacco Act is constitutional and thelimits imposed on rights of the manufacturers isjustifiable. BAT had termed the regulation sweepingand unconstitutional. The legislation, among manythings, prohibits smoking in walkways and streets,mandates specific labeling on cigarette packs thatmust include warnings about health risks. Andrequires tobacco companies to contribute 2% of the‘value’ of the tobacco products produced orimported into the country into a fund. BAT had soughtto reverse a March 2016 decision by High CourtJudge Mumbi Ngugi, who declared that the rules didnot violate the Constitution. The 2014 TobaccoControl Regulation governing the manufacture, saleand advertising of tobacco products, will now takeeffect immediately.

South Africa: Cigarette, Tobacco RatesRaisedSouth Africa’s Finance Minister Pravin Gordhan announcedan increase in taxes for tobacco products and alcohol bybetween 6.1% and 9.5% on February 22nd, 2017. Tablingthe Budget in the National Assembly, the Minister said theexcise duty on cigarettes will go up 8% this year, from thecurrent R13.24 per 20 box to R14.30. While tobacco willrise by the same percent, from R14.88 to R16.07 per 50g.Pipe tobacco and cigar products will see a 9.5%increment.

Uganda: Meridian Tobacco ToCommence Operations In UgandaPanAfrican Tobacco Group founder Tribert RujugiroAyabatwa announced the forthcoming official opening ofthe Meridian Tobacco Co. (MTC) factory in Uganda,together with the farmer development, food crop andforestry improvement programs, scheduled for May 2017.The project, operational since 2015-2016, encompassesa US$8 million factory, a US$10 million leaf-growingprogram and a US$2 million food crops and forestrydevelopment initiative. The MTC plant directly employs352 workers and empowers 15,000 small farmers thatsupply the facility. An additional 1,600 workers and smallbusinesses such as transporters comprise the workforceseasonally.

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TOBACCO NEWS

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Zimbabwe: Tobacco Marketing Season To Open On March 15th

Zimbabwe’s tobacco marketing season for 2017 is scheduled to begin next month, on March 15th, 2017, the TobaccoIndustry and Marketing Board (TIMB) declared in a statement. Contract tobacco sales will start the following day, onMarch 16th. TIMB has licensed three auction floors- Boka Tobacco Floors, the Tobacco Sales Floors and the PremierTobacco Floors for the season, besides 19 buyers have also been enrolled. Sales bookings would open on March 1st

to 6th. A total of 82,305 farmers have registered this year, of which around 14,952 are reportedly making their debut inthe industry. Leaf tobacco was planted on 91,805 ha as of January 1st week, compared to 87,755 ha during the sameperiod last year. The quality of the crop is said to be excellent and growers are anticipating prices between US$4.00and US$5.00 per kg. Tobacco is a major foreign currency earner, and raked in close to US$1 billion (US$933.6million from the sale of 164.5 million kg. of tobacco) last year in exports, ahead of platinum and gold.