Tobacco Asia

52 tobaccoasia LEAF NEWS 烟叶新闻 Brazil's Tobacco Crop Grows 9%, Production Jumps 37% The 2024/2025 tobacco crop in southern Brazil will span 309,982 hectares, reflecting a 9.08% increase from the previous year, reports Kohltrade. Paraná leads with a 13.63% growth, reaching 83,981 hectares, followed by Santa Catarina with an 11.78% increase (94,212 hectares), and Rio Grande do Sul, which saw a 4.6% rise to 131,789 hectares. The number of families involved in tobacco farming has also risen, from 133,265 in the 2023/2024 harvest to 138,020 this year, marking a 3.57% increase. Marcílio Drescher, president of the Brazilian Tobacco Growers Association (Afubra), explains that the rise in both acreage and farming households was expected, driven by two profitable harvests. However, he warns that this expansion during stable weather conditions could lead to oversupply, potentially affecting farmers' income. The production volume is projected to increase by 37.08%, with a total of 696,435 tons of tobacco expected in southern Brazil. This includes 630,539 tons of virginia tobacco (36.52% growth), 54,624 tons of burley tobacco (44.07% increase), and 11,272 tons of common tobacco (36.45% growth). Price negotiations for the 2024/2025 harvest will begin once production cost assessments, currently being conducted by various tobacco organizations and companies, are finalized. Pakistan Growers Struggle with Delays and Demand Drop A two-month delay in announcing the annual tobacco procure- ment target has caused financial strain for Pakistan's growers, as both national and multinational companies have further reduced their buying targets for the upcoming year, according to Dawn. Industry insiders revealed that the total procurement demand for 2025 has been cut by 2.5 million kilograms, dropping to 74.81 million kilograms from 77.32 million kilograms this year. Pakistan Today says this 3.24% reduction continues a downward trend, with demand falling from 85.5 million kilograms in 2023. Over the last two years, total demand has decreased by 10.69 million kilograms, or 10.5%, raising concerns about the future of tobacco farming in the country. Under Martial Law Order (MLO) 487, companies are required to announce tobacco quotas by October 31, allowing farmers to decide whether to grow tobacco or wheat. How- ever, the delay left farmers with no option but to plant tobacco, as the window for wheat sowing already passed. India Tops Tobacco Exports but Faces EU Hurdles India became the world's top tobacco exporter, reaching US$1.2 billion in exports, a significant leap from third place in 2022, reports India Today. In FY 2023-24, tobacco exports grew by 19.46%, with unmanufactured tobacco and products hitting a record INR120.058 billion (US$1.5 billion), marking an 11.3% increase in rupees and 19.5% in dollars. However, the future of India's tobacco export industry is at risk due to the country's struggle to meet stringent European sustainability standards. Many Indian tobacco exports are expected to be affected by the EU's evolving sustainability regulations, including carbon neutrality and net-zero goals, which could hinder access to major European markets. It is estimated that 50-60% of Indian farm exports, including tobacco, will face challenges in complying with these standards due to insufficient investments in technology and training. The EU's frameworks, such as the European Green Deal, European Sustainability Reporting Standards (ESRS), and the Carbon Border Adjustment Mechanism (CBAM), will gradually introduce tougher requirements over the next decade, with full implementation expected by 2030. To maintain access to the EU market, Indian tobacco importers must adapt to these new regulations and align with the EU's sustainability and climate goals. Indian tobacco farmers will need significant technologi- cal upgrades, financial backing, and strategic investments to comply with the EU's strict sustainability standards. These regulations are likely to have a greater impact than the disrup- tions caused by ISO standards in services and manufacturing or Euro standards in the automotive industry. For the agricul- tural export sector, particularly tobacco, the shift to sustainabil- ity standards could lead to major challenges. Without the necessary knowledge, technology, and resources, India's tobacco export market may face substantial setbacks. As European standards start impacting exports in 2026, Indian tobacco prices may fall, offering benefits to local buyers. Zimbabwe Shisha Tobacco Output Soars Farmers in Zimbabwe have planted 450 hectares of shisha tobacco so far, making up 88% of the 514-hectare goal, as the crop's commercial production enters its third year, reports The Herald. Dr. Rebecca Manford, c.e.o. of Cavendish Lloyd Zimbabwe, praised the government's decision to extend the seedbed destruction deadline to January 15. She noted that this extension would give farmers additional time to transplant and meet the target. "Cavendish Lloyd has contracted 149 growers to produce a target yield of 775,000 kilograms, and with the ongo- Brazil's tobacco production volume is projected to increase by 37.08% this season. Credit: Rawpixel

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