China not only sells raw tobacco, but it is also a master of processed tobacco.
Tobacco is causing cancer and other diseases around the world, but countries are using it extensively. China is called the stronghold of tobacco. Most of the tobacco in the world is grown here. On the pretext of World No Tobacco Day (31 May), let us understand how China became a stronghold of tobacco? How many countries buy tobacco from it? What products does China make from tobacco? Who are the top five tobacco producing countries in the world?
The reason behind China’s success is no coincidence, but decades of deliberate government policy. In the 1980s, when many countries of the world were banning tobacco, China decided to make it the basis of its economy. China National Tobacco Corporation is the world’s largest tobacco company. It is government-owned, which gives it unlimited funding and freedom to make policies. Farming is done on a large scale in China. Farmers in provinces like Yunnan are completely dependent on tobacco cultivation. Here lakhs of farmers do farming with modern technology. China has developed such varieties which give higher yields in less water.
About 35-40 percent of the world’s total tobacco production comes from China alone. Its annual production is about 21 to 24 lakh metric tons. Millions of cigarette packs are produced every minute in China.
Who is the biggest buyer of China’s tobacco?
China’s business network is very large. China not only sells raw tobacco, but it is also a master of processed tobacco. China exports tobacco products in some form or the other to more than 125 countries in the world. This includes neighboring countries of Asia and remote areas of Africa. America is the largest buyer in terms of value. Indonesia is a big buyer in terms of volume and Vietnam is a neighboring country with continuously increasing demand.
China uses tobacco as a bio-resource. Photo: Unsplash
The local cigarette industry here is heavily dependent on tobacco leaf coming from China. Countries like Germany and Belgium often import semi-processed tobacco from China. China’s annual tobacco export ranges between 9 to 10 billion dollars. 60 percent of the exports are in the form of raw leaves and 40 percent of the finished products are in the form of cigarettes or e-cigarettes.
One may be surprised to know that despite trade wars, America remains a big customer of China’s tobacco sector. To make high-quality cigarettes in America, cheap but well-processed tobacco is needed as filler, which China fulfills very well. About 80-90 percent of e-cigarettes and their parts sold in America are made in Shenzhen province of China.
Tobacco plant. Photo: Unsplash
What does China make from tobacco?
Common people think that tobacco means only cigarettes, but China uses it as a bio-resource. Nicotine sulphate is used in pesticides. China makes it on a large scale and sells it to the world. Tobacco extract is used extensively in research into some pharmaceutical coatings and skin treatments. Reconstituted tobacco is China’s best-kept power. Tobacco sticks and shavings are ground into paper, which is added to cigarettes to reduce cost and increase burning efficiency. China is the largest center supplying cigarette filters (acetate tow) and special cigarette paper to the whole world.
China Makes 2.4 trillion sticks annually.In the case of e-cigarettes, 90% of the world’s manufacturing takes place in China.The Chinese government receives more than $200 billion annually in taxes from tobacco alone.
China makes 2.4 trillion sticks annually. Photo: Unsplash
Top 5 tobacco producing countries of the world
China is the king in this list, but other countries also have their own power. India is China’s biggest rival here.
- China: This country is undisputedly number one. The soil here and government support keep it at the forefront.
- India: India is the second largest producer in the world. Andhra Pradesh and Karnataka are the main centers here. Indian tobacco is famous for its aroma.
- Brazil: Brazil competes with China in terms of quality. Brazilian tobacco is the first choice of premium cigarette companies in Europe.
- Zimbabwe: This African country is known for its gold-yellow Virginia tobacco. China buys the most from here.
- Indonesia: A large amount of tobacco is grown here for products like Cretek cigarettes and local beedis.
China makes many types of products from tobacco and sells them to many countries. Photo: Unsplash
future direction
China is now moving beyond traditional cigarettes and focusing on heat-not-burn technology and e-cigarettes. He knows that in the future there will be less smoke and more nicotine vapor. China has the remote control of the wave of vape across the world.
China becoming a tobacco hub is not just a matter of farming, but it is an economic master-plan. While the whole world is withdrawing from this industry due to health reasons, China has made it its cash cow. 30 crore domestic consumers and export network of 125 countries make China the undisputed king of this sector.
Also read: Neither UP, nor Karnataka, which state supplies the most tobacco to the country?
