Global body highlights farmers' gains

IN FOCUS/ TOBACCO

Tobacco employs the highest number of people per hectare of cultivated land, said ITGA.

For example, the production of flue-cured tobacco in Tanzania required 533 man days per hectare, compared with 217 man days per hectare for rice, the next most labour-intensive crop.

Speaking in favour of tobacco, ITGA defended farmers for growing tobacco as it gave them a chance to benefit from the stability in world-wide demand for the crop, the tobacco plant's hardiness and ability to grow in climates and soils unsuitable for other crops, the relative ease in transporting tobacco and the crop's overall higher profitability.

Tobacco growing supports an extensive industry of processing establishments, auction houses, warehouses, carriers, packers, transhipment companies and insurers, ITGA added.

It claimed that reduction in tobacco farming, even if it were replaced by other less labour-intensive crops, would harm the economy and probably lead to increase poverty.

In Thailand, farming still accounted for about two thirds of the nation's employment with tobacco employing more than one million people.

ITGA said many developing nations depended on foreign exchange earnings from tobacco exports and used export proceeds to fund economic and social development plans.

For example, in Brazil, the Dominican Republic, India and Tanzania, tobacco contributes to about five per cent of total agricultural exports, ITGA pointed out.

Tobacco prices were also much more stable than other farm products and tobacco exports earnings consistently outperforms other export commodities like sugar, coffee, tea and rice, it added.

Tobacco, as one of the most heavily taxed consumer products, was a major revenue source in many countries, ITGA admitted, and domestic taxes on tobacco funded services in education and healthcare sectors.

Expenditures undertaken by tobacco growers, their families and seasonal workers have favourable economic effects in the individual farming communities, as well as positive impact throughout the various nations, it claimed.

Profitable tobacco farmers play a role in enhancing the agricultural infrastructure necessary for the growth of other traditionsl food crops.

Tobacco profits lead to the financing of schools, health services, roads, water supplies and environmental improvement initiatives in local communities.

In many nations, tobacco facilitates capital formation for other industries, including transportation, finance, construction, retail and wholesale trading and manufacturing.

Shops, markets and small businesses that cater to the needs of farm workers and their families benefit from tobacco production.

All these enterprises would be adversely affected by the tobacco farmers' loss of income, ITGA said.