Régie maintains tobacco prices stable

5,000 tons will be exported at half price

The Ministry of Finance issued the tobacco purchasing prices of the Régie, the state-owned tobacco monopoly. “The purchasing prices of tobacco remained stable this year, although tobacco farmers called for more support and for price adjustments,” said Abdel Mawla Almawla, Régie Leaf Department Manager.

Almawla said the Ministry didn’t oblige farmers’ requests due to the economic situation. He said the current prices are already well-subsidized. In 2011, the Régie had increased the price of tobacco by $0.66/kilogram or LL1,000.

Prices range from LL4850 to LL17,700, depending on the quality. The average subsidized price of Southern tobacco bought by the Régie is LL10,000-12,000/kilogram. Bekaa tobacco is bought at LL8,000-10,000/kilogram on average, and Northern tobacco at LL8,000-LL10,000/kilogram.

The margin of support in subsidies to tobacco farmers differs between regions. It ranges between 30 and 45 percent for Southern tobacco, 50 and 60 percent for Bekaa tobacco, and 70 percent for Northern tobacco.

About 5,000 tons of tobacco are exported annually. Southern tobacco is sold abroad at $6/kilogram after filtering and packing. Bekaa tobacco sells at $3/kilogram, and Northern tobacco at $2/kilogram or less.

Local tobacco is exported to four major international companies, Philip Morris, British American Tobacco (BAT), Imperial Tobacco, and Japan Tobacco.