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TTM to pay more for tobacco to help farmers

The Thailand Tobacco Monopoly (TTM) could pay more for the tobacco it purchases in order to assist farmers faced with rising costs. The TTM plans to pay 49 Thai baht (thb1=us$0.02) for one kg of dried burley leaf this year, an increase of two baht over last year’s price. It may also increase the guaranteed price for Virginia leaf by one baht. It has not decided whether to raise the guaranteed price for Turkish tobacco.

An official from the excise department says the higher payments would partly offset costs of production, which have been increasing due to soaring fuel prices and higher fertilizer costs.

The TTM and exporters signed contracts to buy 18 million kg of Virginia tobacco, 39.78 million kg of burley and 8.59 million kg of Turkish tobacco for the 2004-2005 crop season. The TTM says it is purchasing less tobacco in the upcoming season because it has a surplus of stock.