The tobacco industry contributed more to China’s state revenue in 2015, official data showed on Friday [15 January 2016]. The sector handed over 1.1 trillion yuan (nearly 170 billion U.S. dollars) to public finance last year, up 20.2 percent from the previous year, the State Tobacco Monopoly Administration (STMA) said. The industry contributed 6.49 percent of state revenue in 2014, and the ratio for 2015 will probably grow again, although the total fiscal revenue data has yet to be released…Full Article: Jan 2016

Key Point

  • Approximately 50% of Chinese men smoke, while only 2.7% of Chinese women smoke. In total, China has roughly 316 million smokers.

ChinaAg Comments

  • In January 2015, a representative of the NDRC’s price department noted that leaf tobacco only accounts for 5-10% of retail cigarette prices.
  • A large share of Chinese tobacco production takes places in the southwestern provinces of Yunnan, Guizhou, and Sichuan (~53% of total output by volume in 2012). Other producers of note include the central provinces of Henan (9% of output) and Hunan (7.3%).
  • From 2000 to 2012, Chinese tobacco production rose from 2.5 million MTs to 3.4 million MTs or by 33%. During that same time period, the percentage of farm land dedicated to tobacco production increased from 1.4 million hectares to 1.6 million hectares, meaning that China’s tobacco yields rose from 1.78 MTs per ha to 2.13 MT per ha. In general, approximately 90% of the tobacco grown in China is flue-cured or destined for cigarette production.

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