Tobacco Board Endangered

The loss of income for two consecutive years is one of the reasons given by the old parastatal body to put the key under the doormat. What keeps it in operation so far is its financial reserves.

With the management decision to cease operations, the 170 tobacco farmers will be expected to diversify their activities or to seek potential buyers of tobacco abroad.

Most of them are located in the East and North and they annually produce between 330 and 340 tons of tobacco leaves that are exported to Kenya and Uganda.

With the cessation of the activities of TB, the Tobacco Board employees will be expected to be redeployed in various government departments while the planters will be entitled to compensation.

Tobacco Board ceases operations after 84 years of existence

The adventure ends for the Tobacco Board (TB) after 84 years of existence. Indeed, the oldest body parastatal decided to put the key under the mat in 2015. The loss of income for two consecutive years is one of the reasons mentioned.

To date, these are the financial reserves of the organization, responsible for purchasing tobacco leaf growers for export to Africa, which keep it in operation.

Harvesting tobacco leaf for export will rise this year. Indeed, according to forecasts of Tobacco Board (TB), the harvest this year will be around 340 to 345 tons, against 300 to 325 tons last year. Climatic conditions that have prevailed in recent times have favored such a crop that is largely for export.

Imported cigarettes in Mauritius is around Rs 950 million to Rs 1 billion tobacco stalks annually according to the latest statistics of TB. "The trend is downward with respect to consumption of cigarettes in Mauritius," said Le Matinal a senior official of TB. This through an awareness campaign on the harmful effects of cigarettes on public health. Cigarette packages now include images showing the damage caused by tobacco consumption.

This senior official also said that the importation of counterfeit cigarettes is not really a problem. The reason given is that each pack of cigarettes is stamped with a logo bearing the image of the Mauritius Revenue Authority (MRA). And remember that retail is strictly prohibited by law. Cigarette packets can enter undeclared Mauritius only by travelers who relate cartridges while traveling abroad.

He also reported that some retailers continue to sell cigarettes at retail. TB, he said, has not the power to call to order these traders. The import of cigarettes in terms of quantity remained almost the same last four years.

Since the closure of British American Tobacco in 2007, the entire crop of tobacco is exported mainly to Kenya. Mauritius imports mainly cigarettes from Kenya and South Africa. Since the last budget, the customs duty on cigarettes was increased by 25%.

The area under tobacco cultivation for the period from January to June 2011 amounted to around 70 hectares as against 66 hectares in the corresponding period of 2010, an increase of 6.1% according to Central Statistical Bureau.

Production of tobacco leaves increased 26.5% from 98 tonnes for the first months of 2010 to 124 tons for the same period in 2011