Tobacco Asia

52 tobaccoasia LEAF NEWS 烟叶新闻 Tanzania Promotes Greener Tobacco Curing The Tobacco Research Institute of Tanzania (TORITA) intensified efforts to promote renewable energy solutions for tobacco curing, aiming to reduce environmental damage while improving the livelihoods of farmers in Tanzania. The institute, based in Tumbi in the city of Tabora, has focused on addressing the tobacco sector's long-standing dependence on firewood. Tobacco curing in Tanzania has historically relied on wood-fired barns, a practice that has contributed to deforestation in many tobacco-growing areas. TORITA now seeks to shift the industry toward more sustainable practices through applied research, partnerships with other institutions, and innovations designed for small- holder farmers. C.E.O. Jacob Lisuma said the institute prioritizes research that farmers can easily adopt, particularly in rural areas where resources remain limited. "We do not conduct research for theory's sake," he said. "Our work is intended to solve the real challenges farmers face." A central focus of the institute's work involves exploring renewable energy technologies for tobacco curing. Researchers have examined solutions such as solar-powered drying systems and energy-efficient curing barns that can reduce firewood use while lowering production costs. TORITA says the approach aims to combine environmental protection with economic benefits by helping farmers adopt more efficient curing methods that support long-term sustainability. The institute has also strengthened cooperation with academic institutions, including the Nelson Mandela African Institution of Science and Technology in Arusha. Under this collaboration, university students participate in field camps at TORITA, where they work directly with researchers and farmers to address practical challenges in the tobacco sector. The institute says the initiative helps translate academic knowledge into practical solutions that farmers can apply in the field, while also encouraging innovation in sustainable tobacco production. India Tobacco Board Urges Tax Review The Tobacco Board of India urged the Indian government to reconsider a recent increase in cigarette excise duties, warning that the measure could harm the tobacco industry and the livelihoods of farmers and workers. In a letter to finance minister Nirmala Sitharaman, Tobacco Board chairman Yashwanth Kumar Chidipothu said the sharp tax hike has created significant strain across the tobacco value chain. The increase, which took effect on February 1, has pushed cigarette prices up by as much as 60% in real terms, according to the board. Chidipothu said the situation has raised serious concerns among flue-cured virginia (FCV) tobacco farmers, who have approached the board to voice their worries. Some farmers have already begun staging protests and submitting representa- tions to their Members of Parliament, according to media reports. "Considering the urgent industry situation and the significant impact on the farming community, I request you to intervene and revise the excessive duty rates on tobacco products," Chidipothu wrote in the February 10 letter, as reported by Press Trust of India. He warned that steep tax increases could accelerate illicit cigarette trade, which has become a major economic and governance challenge worldwide. According to the chairman, large price differences between legal and illegal products can encourage smuggling, particularly when enforcement capacity remains limited. "High tax and price differentials create strong incentives for smuggling, particularly when enforcement capacity is constrained. Weak border controls, fragmented oversight, and the absence of effective tracking and tracing mechanisms allow illicit operators to exploit policy gaps, while illicit cigarettes increasingly serve as a conduit for organized crime and money laundering," he said. The chairman also warned that the tax increase could reduce demand from the legal cigarette industry, which serves as the main domestic buyer of FCV tobacco. A sharp drop in offtake could leave farmers unable to recover even the basic cost of cultivation, currently estimated at about INR200 (US$2.40) per kg. He said farmers fear market prices could collapse, potentially pushing them into serious debt. Farmers have pointed to earlier experience, noting that a 22% tax increase in 2014 led to a price drop of INR20–INR30 (US$0.24–US$0.36) per kg. Zimbabwe Licenses New Auction Floor The Tobacco Industry and Marketing Board (TIMB) granted a license to Ethical Leaf Tobacco to operate a new tobacco auction floor ahead of Zimbabwe's marketing season, which opens on March 4. The facility, which will operate as the Ethical Sales Floor, has the capacity to handle at least 7,000 tobacco bales per day. Located at 105 Dartford Close in Willowvale, Harare, the site will become the country's third active auction floor, joining the Tobacco Sales Floor and the Premier Tobacco Auction Floor. The license marks a significant development for local industry participants. Ethical Leaf Tobacco already plays a major role in the sector through a contract farming program that supports thousands of growers. The Ethical Sales Floor plans to use digital systems to streamline operations and improve services for growers. The facility will deploy an "in-drive" platform designed to coordi- nate activities between farmers, transporters, and floor managers to ensure a smoother movement of tobacco from farms to the auction floor. Transporters will use pre-booking features before delivering tobacco, a system aimed at reducing congestion and improving warehouse intake scheduling. The operation will also aim to produce sales sheets within 30 minutes, allowing growers to access transaction data shortly after a sale. The system will integrate with major financial institutions to enable immediate payment processing and eliminate delays linked to manual bank transfers. Electronic displays throughout the facility will provide real-time updates on market trends, prices, and sales volumes. Growers will also receive booking confirmations, sales information, and payment notifications through mobile SMS alerts, while USSD-based tools will allow them to manage bookings. The facility will also introduce a chatbot to respond to routine grower inquiries and provide a secure channel for reporting unethical practices. Industry participants say the addition of a third auction floor should give farmers more competitive options and improve service delivery while strengthening the role of local entrepreneurs in the sector.

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