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Malawi’s growers promised good prices at auction

| April 2, 2015

Malawi’s Tobacco Control Commission (TCC) has published auction-floor minimum and maximum buying prices for leaf tobacco.

According to a StarAfrica story, the minimum Burley price has been set at US$0.85 (MK379) per kg, while the maximum has been set at US$4.50 (MK2,007) per kg.

The minimum flue-cured tobacco price has been set at US$0.25 (MK129) per kg and the maximum at US$4.00 (MK1,784) per kg, while the minimum dark fire-cured price has been set at US$1.00 (MK446) and the maximum at US$3.40 (MK1,516) per kg.

TCC CEO, Bruce Munthali, said on Tuesday that tobacco production was estimated to have dropped this season by 10 million kg, or five percent, to 181 million kg from last year’s 191 million kg.

The fall in output was blamed mainly on unhelpful weather conditions.

“Despite natural calamities like heavy rains, floods and dry spells which affected the output of tobacco in the country, the quality of the leaf is still good,” Munthali said.

He said that tobacco growers could expect good prices for their tobacco because of strong competition among buyers.

The tobacco market is set to open on April 8.

Rosier appointed president of Solvay Acetow

| April 1, 2015

Solvay Acetow, a leading global producer of cellulose acetate tow for cigarette filters, has appointed Philippe Rosier as the company’s new president. Rosier succeeded Olivier Ferrary at the end of March.

Rosier began his career in the Solvay Group in 1988, serving as project manager at Acetow’s production plant in Primester, United States. In 1996 he became the strategy and business development director of Acetow, and from 1999 on, he served as general manager of various activities in plastics and energy within the Solvay Group. Rosier became president of the Global Business Unit Solvay Energy Services in 2012.

“Having known Solvay Acetow for many years, I am very pleased to take over the responsibility as president of this company that has been impressively dynamic and innovative within the past years,” said Rosier.

“What makes Solvay Acetow unique and strong are our highly-skilled and motivated employees. Solvay Acetow’s sales, technical and marketing team will further increase their efforts to deepen our customer satisfaction and intimacy by improving product and service quality as well as supply chain and manufacturing excellence.”

JT group goes to court over Ireland’s plain packs law

| April 1, 2015

The Japan Tobacco group has initiated a High Court action against the Irish government aimed at blocking the requirement that cigarettes should be sold in standardized packs, according to a story in The Irish Times.

Last month, Ireland’s President Michael D. Higgins signed into law legislation under which cigarette manufacturers will be required, from May 2016, to produce cigarettes for the Irish market in standardized packaging. From May 2017 only cigarettes in standardized packaging will be allowed to be sold on the Irish market.

Ireland is the second country after Australia to bring in such legislation. In Australia, standardized packaging has been a requirement since December 2012.

The Irish arm of Japan Tobacco, JTI Ireland, is reportedly challenging the legislation on grounds of competence. The group is expected to argue that the state had no right to enact the legislation because it went further than the provisions of a European Union directive.

The Minister for Children Dr. James Reilly, who championed the legislation, indicated previously that the government was preparing for a legal challenge.

Asked about the action, Reilly said the government would defend it robustly in the firm belief that the law was in the best interests of the health and welfare of the public, especially children.

Price-hit cigarette sales recovering in South Korea

| April 1, 2015

Cigarette sales in South Korea, which plummeted in January after a tax-led price hike at the beginning of the year, slowed their downward trend in March, according to a story in The Korea Herald.

According to data compiled by a local convenience-store chain, cigarette sales during the third week of March were down by 15.1 percent on those of the same period of 2014.

In January, sales were down by 40.3 percent year-on-year and in February they were down by 22.4 percent year-on-year.

Cigarette prices increased on January 1 by 80 percent; or about WON2,000 per pack.

Just how much can be read into these figures is hard to say. A convenience store official was quoted as saying that it was usual for cigarette sales to fall in January and February after people made New Year resolutions to stop smoking.

And it was usual also for sales to start to revive in March as more people quit their resolutions to quit.

While the government has been claiming that the price rise was aimed at increasing health awareness and reducing South Korea’s relatively high smoking rates, some policy watchers say the move came as the government expected a tax-revenue shortfall because of a delay in the country’s economic recovery, which had coincided with an expansion in welfare payments.

Cambodia urged to bring in graphic health warnings

| April 1, 2015

Health experts have thrown their weight behind a provision in Cambodia’s draft tobacco-control law that would require graphic health warnings to cover ‘half the face’ of cigarette packs sold in the country, according to a story in The Phnom Penh Post.

According to the World Health Organization, Cambodia is the only ASEAN country that has not passed smoking legislation.

The graphic health warning provision is included in article 10 of the law, which was first drafted in 2003.

The WHO is calling on the government to enact the legislation with haste.

The law is expected to be discussed at the National Assembly towards the end of this month.

Little home-grown data linking smoking and cancer

| April 1, 2015

India has little independent evidence to link cigarettes and cancer, according to a statement apparently made by the BJP (Bharatiya Janata Party) MP Dilip Kumar Gandhi during a New Delhi Television report.

“Does this [smoking] cause cancer or does [it] not? What are the impacts? We have never done our own survey,” he reportedly said.

The MP is the head of a committee that last month recommended that further discussions take place in respect of a government proposal to require health warnings covering 85 percent of cigarette packs.

Tobacco companies had been told late last year that the starting date for the new warnings would be April 1 this year.

It is up to the government to decide whether to accept the parliamentary panel’s recommendation for further discussions, but activists say the missed deadline does not bode well.

“This is just a front for the tobacco industry; it’s going to affect the bottom line of companies and that’s the smoke screen they have put up,” said Bhavna Mukhopadhyay, executive director of the Voluntary Health Association of India.

“In a country like ours, where a large section of the population cannot read or write and more users are coming on board, pictorial warnings are the need of the hour,” she said.

Meanwhile, plans to increase the minimum tobacco purchase age to 25 have not progressed either.

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