Unravel the fascinating world of tobacco cultivation in China, a country with a rich history and significant influence in the global tobacco industry.
Background of Tobacco Growing in China
Tobacco has been a significant part of China’s agriculture and economy for centuries. Its cultivation can be traced back to the 16th century, and since then, it has grown to be one of the main cash crops in the country.
Importance of Tobacco in China’s Economy
Today, China is the most important player in the World Tobacco market, contributing to a whopping 37% of the world’s tobacco production. The Chinese State Tobacco Monopoly, the biggest tobacco company globally, plays a massive role in this prominence. The impact of tobacco on the Chinese economy is immense, not only in terms of employment and income for farmers but also as a significant revenue stream for the government.
Early History and Adoption of Tobacco
Over time, its cultivation expanded, and by the early 21st century, it was estimated that around 20 million farmers were involved in tobacco farming. These farmers often cite the high profits from tobacco as one of the main motivations for its cultivation.
The Role of Government in Tobacco Production
The Chinese government has played a crucial role in shaping the tobacco industry in the country. In 1982, China founded the State Tobacco Monopoly Administration (STMA), which controls tobacco production, marketing, imports, and exports. This system ensures a guaranteed market price for tobacco, although this price is often lower than the natural market price due to the lack of market risk.
Statistics:
Some interesting statistics on tobacco cultivation in China include:
- At the peak of global tobacco production, 20 million rural Chinese households were producing tobacco on 2.1 million hectares of land.
- While it is the major crop for millions of Chinese farmers, growing tobacco is not as profitable as cotton or sugar cane.
- The Chinese government sets the market price of tobacco, which is lower than the natural market price because of the lack of market risk https://en.wikipedia.org/wiki/Cultivation_of_tobacco
. - China represents 5% of the international tobacco leaf trade https://atlas.tobaccoleaf.org/china/
. - In 2019, the types of tobacco leaf grown in China included Flue Cured Virginia and Burley https://atlas.tobaccoleaf.org/china/
. - As of 2017, there were 5,497,000 tobacco growers in China https://atlas.tobaccoleaf.org/china/
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