[Intl-tobacco] =?X-UNKNOWN?Q?More_To_Inhale=3A_Tobacco=A0=A0Production=2C_Sales?= =?X-UNKNOWN?Q?_Increasing_=28fwd=29?=

[Robert Weissman]

More To Inhale: Tobacco=A0=A0Production, Sales Increasing
Source: China Online, Monday, 7/17/00

 China is succeeding in increasing both its production and sales of
tobacco, while also decreasing its stocks of this product, the July 13
Zhongguo Jingji Shibao (China Economic Times) reported.

Zhou Ruizeng, director of the State Tobacco Monopoly Bureau=92s Foreign
Affairs Office, said recently that the country=92s tobacco industry has
achieved a 10 percent increase in output and sales in the first half of
this year compared with the same period last year.

Currently, 14.66 million mu (2.4 million acres) across China are planted
with flue-cured-type tobacco=97230,000 mu (37,812 acres) fewer than in 1999=
=2E =20
Flue-cured tobacco is dried by hot air that is passed through a tube. By
the end of June, Chinese companies had 61 million dan (3.1 billion kg/6.8
billion lbs.) of tobacco in stock, down 14.5 million dan (725 million
kg/1.6 billion tons) from the same period last year, the article said.

These accomplishments are helping pave the way for the tobacco industry to
meet the State Council=92s requirement of "reducing the nation=92s tobacco
stocks by 20 million dan (100 million kg/220 million lbs.) within three
years."

In the first half of this year, Chinese companies produced 16.4 million
cartons of cigarettes. This was 462,000 cartons more than in the same
period last year and constituted a 2.9 percent increase, the article said.

Also during the first half of this year, Chinese companies sold 16.3
million cartons of cigarettes, or 987,000 cartons more (up about 6
percent) than in the same period last year.

By the end of 1999, 14 of China=92s 90 medium- or large-sized tobacco
enterprises were suffering losses. Twelve of these companies say their
situations have improved, and five of these 12 firms say they are already
back in the black, the article said.

Zhou explained that if these strong results continue through this year=92s
second half, the industry as a whole is likely to experience a profitable
year.  China=92s government also hopes its tax revenues from tobacco
production and sales increase to 100 billion renminbi (US$12.1 billion)
within this year, he added.