Govt. on drive to snuff out tobacco, cigarette puff
The government is determined to ban the cultivation of tobacco in Sri Lanka but following discussions with farmers the relevant authorities are said to have withheld the release of the new circular in this regard.
Introduced in 1956 the cultivation of tobacco has been assisting livelihoods numbering 300,000 with 20,000 farmers currently involved in the production of this produce, Tobacco Barn Owners Association President Jayantha Egodawela told the Business Times on Friday ahead of a media briefing they were scheduled to hold in Colombo later that day.
He noted that the new circular, if released, would result in a loss for the farmers and their immediate families who continued to receive a standard price for their produce compared to the paddy cultivation where prices were variable.
Since 2015 he said the government had repeatedly been informing the farmers to move out of the cultivation of tobacco as a result of which some had stopped production and were awaiting instructions from the government for the introduction of a new crop as a replacement.
He noted that tobacco is being cultivated in the regions of Anuradhapura, Galewela, Polonnaruwa and Mahiyangana generating about Rs.1.5 billion during a 6-month period for tobacco cultivated on 2500 hectares. The current price is at Rs. 580 per kilo.
In the meantime, the government is gearing up to impose a 100 metre ban on the sale of cigarettes from certain places and the sale of individual cigarettes, the Tobacco Retailers Association said on Thursday at a media conference in Colombo.
Tobacco Retailers Association Secretary Nilantha Costa said that the government has plans to impose a ban on the sale of cigarettes within a radius of 100 metres from places of worship, schools and other places frequented by youth.
He noted that in addition to this the government is also looking at imposing a ban on the sale of individual cigarettes.
The retailers asserted that the government should not take haphazard decisions in haste without careful examination of the consequences and pointed out that this would lead to closure of the manufacture of cigarettes and affect incomes of families as well.
Mr. Costa noted that these measures could reduce the income of sales by at least 50 per cent at these outlets since about 99 per cent of the businesses would be located within proximity to these places.
Moreover, he pointed out that most people would not purchase cigarette packs but consume individual cigarettes that could seriously affect sales.
Retailers pointed out that the last time the government imposed a price increase of Rs.50 per stick it had a bearing on their profits as a result of which the 15 per cent profits earned from the sale of a cigarette was reduced to two per cent.