To­bacco pro­duc­tion to sig­nif­i­cantly in­crease

Azer News - - Business - By Narmina Mam­madova

TThis is stated in the con­cept of so­cio-eco­nomic de­vel­op­ment of Azer­bai­jan and the fore­cast fig­ures for 2019 -2022.

In sub­se­quent years, ac­cord­ing to gov­ern­ment fore­casts, to­bacco pro­duc­tion will ex­pand. Thus, in 2019, this fig­ure will be 76.9 mil­lion man­ats, in 2020 - 94.4 mil­lion man­ats, in 2021 - 115.7 mil­lion man­ats, in 2022 - 141.7 mil­lion man­ats.

Azer­bai­jani Pres­i­dent Il­ham Aliyev signed a de­cree ap­prov­ing the "State Pro­gram for the De­vel­op­ment of To­bacco Grow­ing in Azer­bai­jan for 2017-2021" on Au­gust 10, 2017.

Ac­cord­ing to the or­der, the State Pro­gram is aimed at the de­vel­op­ment of to­bacco grow­ing, deep­en­ing the sphere of to­bacco pro­cess­ing, in­creas­ing prof­itabil­ity and ex­port po­ten­tial as well as in­creas­ing em­ploy­ment of the ru­ral pop­u­la­tion.

The state pro­gram takes into ac­count all the nec­es­sary fac­tors for the de­vel­op­ment of this in­dus­try con­trol over the qual­ity of seeds, phy­tosan­i­tary. This shows that the state aims to cre­ate all con­di­tions and pro­vide tar­geted sup­port for the de­vel­op­ment of to­bacco grow­ing.

Cur­rently, the coun­try eyes to min­i­mize the im­port of to­bacco prod­ucts. To this end, the man­u­fac­turer of to­bacco prod­ucts Ta­baterra CJSC has built a fac­tory of to­bacco prod­ucts in the Sum­gayit Chem­i­cal In­dus­trial Park.

Di­rec­tor of Ta­baterra CJSC El­man Ja­van­shir told the head of state that the fac­tory will pro­duce in­ter­na­tional stan­dard cig­a­rettes un­der “Made in Azer­bai­jan” brand. Built us­ing British, Ger­man and Ital­ian tech­nolo­gies, the fac­tory will have the an­nual pro­duc­tion ca­pac­ity of 11 bil­lion fil­ter cig­a­rettes in three types. It will meet 80 per­cent of the coun­try`s de­mand for to­bacco prod­ucts.

Un­der the project, which cost $48 mil­lion, 200 jobs were cre­ated.

Smok­ing is com­mon through­out the world, and get­ting peo­ple out of to­bacco de­pen­dence to­day is be­com­ing a pri­or­ity for many na­tions.

Ear­lier, coun­try man­ager of the World Bank (WB) Naveed Has­san Naqvi re­peat­edly made pro­pos­als to the Azer­bai­jani gov­ern­ment to in­crease ex­cise taxes on to­bacco prod­ucts and thereby, rais­ing prices, to limit the pop­u­la­tion’s ac­cess to cig­a­rettes. In his opin­ion, this will in­crease rev­enues to the state bud­get, and will pos­i­tively af­fect the health of the na­tion, lim­it­ing the num­ber of smok­ers.

The Azer­bai­jani gov­ern­ment heard calls from the WB ex­perts and in­creased ex­cise taxes on man­u­fac­tured to­bacco prod­ucts in the coun­try.

Cur­rently, over 10 bil­lion cig­a­rettes are con­sumed in the coun­try. Of these, only 1.6 bil­lion are pro­duced in Azer­bai­jan, while 9 bil­lion cig­a­rettes are be­ing im­ported.

The price of a pack of cig­a­rettes in Azer­bai­jan in av­er­age amounted at $1.2, while it is $3 in Turkey, $3.5 in Rus­sia, and $4 in Poland.

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