Indonesian tobacco growers appeal for government restrictions on tobacco imports

Tobacco “tobacco industry newsletter” reports compiled according to the “Jakarta post” reported on the former Indonesian President Djoko met with Indonesian province from 9 Tobacco Growers Association (APTI) members, the meeting, called on the government to control tobacco growers on behalf of imports, in order to absorb the local farmers produce tobacco imports in order to protect the local farmers.

APTI chairman Agus Parmuji said after the meeting: ““ if a company needs to purchase a small amount of local tobacco leaves, a small import quota must be obtained at the same time.”. If a company needs to buy a large amount of local tobacco leaves, the government can give a bigger quota. But it should not exceed 20% of its total consumption. ”

According to APTI data, tobacco imports in 2003 amounted to about 28000 tons, increased to 90 thousand tons in 2010, further increased to 150 thousand tons in 2012, accounting for about 72.5% of the local consumption. The increase of imported tobacco leaves led to the decrease of the absorption rate of local tobacco leaves and the decrease of prices.

Local tobacco production is 247 thousand tons per year, priced at 45 thousand rupiah (3.31 US dollars) to 350 thousand rupiah, depending on quality.

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