Tobacco production is estimated to reach 180,000 tons
The Indonesian Tobacco Farmers Association estimates that tobacco production this year can grow as of 2018 if supported by the weather in various commodity centers.
"We estimate that this year the season is good, we can be like 2018. At least we can reach 180,000 tons," said Chairman of the Indonesian Tobacco Farmers Association (APTI) Soeseno to Bisnis, Tuesday (5/21/2019).
Soeseno predicts that the tobacco planting period this year can begin in June considering the rainy season has stopped. However, he acknowledged that there were some areas which had begun planting.
Based on the estimation of the Meteorology, Climatology and Geophysics Agency (BMKG), the beginning of the dry season in Java as the largest tobacco producing area generally occurs in May 2019. The peak of the dry season itself is predicted to occur in August in 150 season zones on the island of Java.
Soeseno revealed that the condition of this season played a big part in tobacco production. He noted that the country's tobacco production had dropped in 2016 due to high rainfall. The slower dry season compared to the previous period also forced tobacco farmers to delay planting time, resulting in a decrease in production.
The Directorate General of Plantations, the Ministry of Agriculture noted, the national tobacco production in 2016 was 126,728 tons, down about 67,062 tons or around 34% compared to 2015 which reached 193,790 tons. Tobacco production then began to improve in 2017 reaching 181,142 tons.
A positive signal for the growth of tobacco production in 2019 is expected to be followed by the sustainability of imports given the high demand for cigarette industry raw materials.
The Indonesian Tobacco Society Alliance (AMTI) notes the need for industrial tobacco can reach 330,000 to 350,000 tons every year. "The absorption of the cigarette industry to tobacco farmers is good, but it will continue to import to cover the deficit," said AMTI Chairman Budidoyo when contacted by Bisnis, Wednesday (5/22).
Based on data from the Ministry of Trade, tobacco imports during January-March 2019 reached a value of US $ 158.41 million, down 0.7% compared to the same period in the previous year which amounted to US $ 159.53 million.