Local tobacco products to cover 80pct of country’s demand
Azerbaijan aims at the rational usage of the potential of the local tobacco production and increase of its competitiveness. The volume of tobacco production in Azerbaijan in aggregate expression is expected at the level of 62.7 million manats ($36.8) in 2018, which is 37.5 percent more than last year.
Azerbaijan aims at the rational usage of the potential of the local tobacco production and increase of its competitiveness.
The volume of tobacco production in Azerbaijan in aggregate expression is expected at the level of 62.7 million manats ($36.8) in 2018, which is 37.5 percent more than last year.
This 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 ($45.1), in 2020 - 94.4 million manats ($55.4), in 2021 - 115.7 million manats ($67.9), in 2022 141.7 million manats ($83.2).
Earlier, 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.
Tabaterra CJSC intends to cover 80 percent of the demand for tobacco products in Azerbaijan, the company told Trend.
According to the company, the plant plans to install 5 production lines with an annual production capacity of 11 billion cigarettes. At the same time, the company added that, at present, the annual demand for cigarettes in the country is 14 billion pieces.
Currently, the bulk of raw materials that are used in production falls on imported products, but at the same time, the company is taking steps to localize the purchase of raw materials, the "Tabaterra" noted.
"The factory, built using British, German and Italian technologies, will produce cigarettes with a high-quality filter in three different formats that fully meet international standards. Currently, the factory produces cigarettes under its "Argo", "Kingston" and "Senate" brands. The products under the “Argo” brand have already been presented to consumers. It is also expected that the Kingston and Senate brands will be presented in the near future. In addition, the company plans to produce products of such world largest cigarette manufacturers as British American Tobacco, Japan Tobacco International and Imperial Tobacco," the company said.
Speaking about the company's goals for the future, Tabaterra noted that along with work in the domestic market, export opportunities are also being studied.
“The first step we will take in this direction will be to ensure the presence of the company's products in the Trading Houses of Azerbaijan operating in foreign countries,” the company pointed out.
Azerbaijan eyes to minimize the import of tobacco products. To this end, the manufacturer of tobacco products “Tabaterra” built its first factory in the Sumgayit Chemical Industrial Park in November 16, 2018.
The factory produces 7 billion cigarettes per year.
Under the project, which cost $48 million, 200 jobs were created.
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.
As of January-May 2018, 1,275 billion cigarettes were produced in the country. In the reporting period, the country produced more cigarettes than during the entire 2017, when 1.241 billion cigarettes were produced.
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.
At the same time, the state is concerned about the population’s health and, in this connection, Azerbaijani President Ilham Aliyev signed a law on amending the Code of Administrative Offenses. The changes are related to the fines which concern smoking.
Smoking in buses regularly traveling on intracity (intra-district), intercity inter-district) and international routes is subject to a fine of 40 to 50 manats. This penalty will also apply to persons smoking in public motor vehicles and taxis.
Azerbaijan also adopted the law “On Restriction of the Use of Tobacco Products” in the end of last year.
In accordance with the law, smoking is forbidden throughout the territory of various educational institutions, in hotels, health care facilities, rehabilitation centers, health resorts, social facilities, theaters and cinemas, at exhibitions, reading rooms, libraries, museums and other cultural institutions, in underground and above-ground crossings, buses (including intercity and international), taxis, metro, air, railway, sea and river transport, bus stops, railway stations, river and sea ports, airports, elevators, common areas of multi-apartment buildings, in buildings and enterprises where flammable substances are stored, on playgrounds, beaches, workplaces of organizations, enterprises, offices, regardless of organizational and legal form and ownership.
In accordance with the article 212.1 of the Code of Administrative Offences, a fine of 30 manats ($17.6) is charged for smoking in prohibited places. For the absence of specially designated smoking areas at enterprises, offices and organizations as well as the absence of warning signs or “Smoking is prohibited” signs, office holders are fined 400 manats ($235), and legal entities – 1,000 manats ($587).
Smoking prohibitions already exist in such countries as the U.S., Finland, Ukraine, Great Britain, Scotland, Northern Ireland, Germany, France, Belgium, Croatia, Greece, Turkey, Kazakhstan, Syria, Egypt etc.