What is PT HM Sampoerna Tbks moat

Jürgen Weber D S B T A

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1 Jürgen Weber D S B T A

2 Double standards: Big Tobacco in Asia ... D S: B T A Published by: Unfairtobacco.org c / o Berliner Landesarbeitsgemeinscha Umwelt und Entwicklung e.v. (BLUE 21) Gneisenaustr. 2a D Berlin Fon: + 49- (0) Fax: + 49- (0) Internet: hp: // Author: Jürgen Weber, Berlin Editing and layout: Sonja von Eichborn, Berlin Photo credits Title cover front and back: Work for a Be er Bangladesh Trust, Dhaka, Bangladesh small picture above: Bangladesh Tamak Birodhi Jote / Bangladesh An -tobacco Alliance (BATA) small picture Mi e: Meena Kadri / Meanest Indian on Flickr, under Crea ve Commons (CC by 2.0) small picture below: Alejandra Ellison-Barnes With financial support from and the LEZ Berlin. The editors are solely responsible for the content. Berlin, January 2012

3 ... IN FCTC-R: W ?! Introduction ... 2 TA Tradi on and Disruption ... 3 T, New Power China ... 9 MI Local companies still control the market ... 13 NM Indonesia and Malaysia as future markets ... 17 CP Joint Ventures - a death knell ... 19 OI tobacco yield in the standard range ... 21 TN court in Bangladesh prohibits tobacco cultivation ... 23 AFT Iran as a transit country for the illegal tobacco trade ... 25 NJ Tobacco monopoly on the verge of extinction? ... 27 F! The search for alternatives ... 29 R ... 31 Q ... 33 S D ... 35

4 Double standards: Big Tobacco in Asia ... N FCTC-R: W ?! Introduction On the morning of September 3, 2011, Mr Vasanthkumar, head of the An Tobacco Forum in Mysore in the southern Indian state of Karnataka, asked which event to attend: a ceremony sponsored by Indian Tabakins tut (TII) at which Best prac ces in tobacco growing, or an informa on event about the legal possibilities to take action against violations of the Tobacco Control Act at the level of the more than 600 Indian administrative districts (districts) Police finally come together to discuss the implementation of the existing legal regulations. 600 tobacco farmers were invited to Mysore to attend the Indian Tobacco In tut's event, which was held at the same time. Among the V.I.P. guests are members of the Indian Na onal Parliament in New Delhi, many parliamentarians from the state and leading representatives of the Indian Tobacco Authority. For Vasanthkumar one thing is certain: when it comes to concrete steps against the killer plant tobacco, double standards are applied. In other Asian countries, too, tobacco enthusiasts are wondering why their governments still take the interests of the tobacco industry and tobacco growers more seriously than the health problems resulting from tobacco consumption and the social and ecological upheavals associated with tobacco cultivation. With the FCTC 2, the Asian governments (with the exception of Indonesia) have committed to exercising greater control over the tobacco industry and creating alternative sources of income for those who work in the tobacco industry. If measures to implement the convention are announced and decided, the tobacco industry is still all too good at circumventing the new regulations. The fatal smoke signals from Asia 3, such as smoking bans in public places, compulsory warning notices on packaging or plain package ini a ves, however, pose new challenges for the interna onal tobacco industry. 4 This study provides background information for educational and public relations work. Socio-economic dimensions of tobacco produc on are presented as examples and are intended to provide suggestions and access for further research. Given the cultural, political, economic and social diversity that the countries of Asia display, not all regions can be taken into account in this short study. A separate work is also appropriate for Russia; including the country at this point would go beyond the scope of the short study. The study focuses on China and India, which are currently the most politically and economically influential countries in Asia. 1 h p: // (seen on). 2 Framework Conven on on Tobacco Control of the World Health Organization. 3 h p: // www. d.de/unternehmen/industrie/:hoffnungsmarkt-der-tabakfirmen-fatale-rauchzeichen-auschina/ html (seen on). 4 Philip Morris (like Bri sh American Tobacco, Imperial Tobacco and Japan Tobacco) is suing against an ini a ve of laws in Australia: From December 1, 2012, all cigars, pipe tobacco and cigars are only allowed in olive-green packaging, without a branded design and with health warnings to be sold. The Australian Government's measure also preoccupies the World Trade Organisa on (WTO) and the Council for the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). On the debates in the WTO and the TRIPS Council see also: h p: // (seen on). 2

5 ... T A Tradi on and disruption A growing tobacco and cigar market in Asia is stimulating the fantasies of tobacco mules. According to The Economist, the golden goose to be excluded is the Southeast Asian region. 1 Indonesia, with a population of 242.5 million, and the Philippines, with 95 million, seem to combine two things: the prospect of a growing tobacco market and high profit rates, and a laissez-faire attitude by the government in regulating the tobacco market. Indonesia is one of the few countries that has not yet refuted the WHO Tobacco Control Convention. Our goal is () to maintain widespread social acceptance of smoking in Asia. Philip Morris, tobaccoatlas.org 3

6 Double standards: Big Tobacco in Asia ... Tobacco cultivation has been widespread in many Asian countries for hundreds of years, with specific varieties having developed in each region. In Bangladesh, China, Indonesia, Japan and North and South Korea, tobacco is grown on more than 0.25 percent of the total agricultural area. 3 In India, China, Bangladesh, Indonesia and Turkey, more than hectares of fertile arable land were planted with tobacco. 4 Two thirds of the tobacco produced worldwide comes from four countries, including the Asian great powers India and China. In China alone, around t of raw tobacco were harvested in 2009, compared to: India: t, Indonesia t, Pakistan t. 5 In Asia (together with Australia) 57 percent of the tobacco products manufactured worldwide are consumed (of which around 37 percent in China). 6 The emergence of chewy middle classes, such as those in Indonesia, Iran, India and China, which are orientated towards Western consumption patterns, reinforces this trend. Altria / Philip Morris 7, Bri sh American Tobacco, Japan Tobacco Interna onal, Imperial Tobacco and the world's largest state monopoly for tobacco products, the China Na onal Tobacco Corpora on (CNTC), are competing for shares in the Asian tobacco market. A study carried out in seven Asian countries by the Southeast Asian Tobacco Control Alliance (SEATCA) in 2009 shows that the willingness to smoke is increasing among girls up to the age of 16, particularly in the Philippines, Malaysia, Indonesia and Vietnam. In Indonesia and the Philippines, cigars are sold in thin lip packs in order to reach young customers. Thin cigars are supposed to induce young female adults in India to consume cigars. 8 In 2008, around 53 percent of all adult men (men) smoked in China. Only in Indonesia, Malaysia, Laos and Afghanistan was this percentage higher in 2009, at over 60 percent. Q T A In the course of economic globalization, forms of tobacco consumption have spread that were previously only known in a few specific regions of Asia. R T is coarse to finely cut tobacco that is taken from the can and squeezed between the gums and lower lip. The Niko n is absorbed through the oral mucosa. The flow of saliva mixes the tobacco with the saliva, creating tobacco sauté that has to be spat out regularly. Smoke-free tobacco products are: khaini / khara, mawa, gudhaku, snus, shammaah, wet or naswa. B consist of sun-dried tobacco that is wrapped in the bla of the tendu tree (ebony) and fixed with a cotton thread. Bidis are common throughout South Asia and are the most widely consumed smoking product in India. K are clove-flavored cigars that are particularly popular in Indonesia. S - K are tobacco, tobacco paste or tobacco powder for oral use, sometimes also referred to as spitting tobacco. These products are known under different names: guthka, kaddipudi, hogesoppu, gundi, kadapam, zarda, pa wala, kiwam, mishri and many more. Main distribution area is India. W (also shisha, hookah, narghile, hubble-bubble) have also found widespread use in parts of Asia. T are widespread worldwide and are made, for example, from Dornbursch, slate, clay, etc. Clay pipes are known in Asia as sulpa, chillum and hookli. Cigars smuggling and counterfeiting undermine government and civil society efforts to reduce tobacco use. 9 For example, it is assumed that most of the foreign cigars sold in China are smuggled goods or counterfeit brands. In Iran and Myanmar, too, the market share of smuggled cigars is very high, at 50 percent and more. 10 Many of China's counterfeit production facilities are located in the rural areas of Fujian and Guangdong provinces. In order not to be discovered, they are often laid underground. 4th

7 ... W (I) In countries in which tobacco companies want to market their products, they usually sell also runs Corporate Social Responsibility (CSR) programs. These must be understood as part of a global publicity campaign. CSR serves to improve the reputation of the tobacco industry and to ensure its survival. 1 In the words of BAT it sounds like this: Responsibility and CSR give us reputation, reputation secures us a place at the table. 2 The tobacco industry's commitment to CSR is not only criticized by on-tobacco campaigns and NGOs. The WHO also categorically questions the social responsibility of the tobacco industry. 3 If you look at the many examples of CSR, the hard facts could easily be forgotten: I A team from Sampoerna Search and Rescue (SAR) cares for the victims of natural disasters. Its services include medical care, the provision of emergency accommodation and the distribution of food. In 2007, 4 K BAT sponsored a so-called career forum in which more than 30 private companies took part. The company is also involved in the fight against child labor and through reforestation programs in nature conservation. 5 C The privately funded tobacco lobby Chinese Associa on Tobacco Control, a local branch of the state-owned tobacco company, supports dozens of schools and elementary school libraries (including in Tibet) as well as the Healthy Mothers Express campaign of a development fund for Chinese women. 6 P PMI supports the so-called knowledge channel as part of the Proficiency Measures for Quality Educa on (PMQE) program. It is a television-based education system for elementary and secondary schools and is followed by 3 million students, according to the PMI. 7 China is the global market leader in the illegal cigars trade, an estimated 400 billion counterfeit cigars are produced there every year. 11 This market is also growing in India. In 2008, the share of illegally produced and smuggled cigars was around 20 percent of the total sales of cigars. 12 The publication of once secret internal corporate documents confirms that international tobacco companies were heavily involved in the illegal cigarette trade in Asia. 13 It is difficult to estimate how many people are employed in the tobacco industry in Asia. There is a lack of meaningful, static information, and the figures given by companies have yet to be verified. In a largely informal sector, mainly seasonal workers, migrant workers, women and girls and child workers work on the tobacco plantations in Asia and in home work. The production area for cigars and cigars is a relatively small source of employment, also because of the advancing mechanization. Tobacco cultivation also only accounts for a small proportion of the total number of jobs in agriculture. In China, for example, only around 3 percent of farmers also grew tobacco in 2003. 14 family members contribute significantly to the family income. Depending on the price fluctuations for raw tobacco on the world market, the costs of fertilizers and pescides, the crop yields, fertile soils and the business practices of middlemen and tobacco companies, the vast majority of smaller tobacco growers quickly find themselves in the debt trap if they follow the promises of the Follow industry and convert their produc on wholly or partially to tobacco cultivation. Child labor is any profit-making work performed by children. Many cases of child labor in the tobacco fields and in the cigars enproduk on remain hidden, also because families fear the reprisals on the part of the middlemen and local profiteers. An analysis by the WHO highlights that especially in Southeast Asia and the West Pacific region, children work in tobacco cultivation. 15 Most of the time, the children start to work on the tobacco plantations or, as is particularly the case in South India, with the production of bidi cigars at home at an early age and are thus deprived of the chance of an education. Interviews conducted in Vietnam on employment in the tobacco industry suggest that children as young as 7 years old have to work in the tobacco industry. They, too, are already suffering from back on pescidal use 5

8 Double standards: Big Tobacco in Asia ... leading diseases such as disorders of the immune system or dysfunctions of the nervous system. 16 The Resource Center for Tobacco Free India estimated in 2009 that 1.7 million children in India's bidi industry are busy rolling up tobacco or collecting tendu leaves. 17 Debt servant is a particularly inhuman form of exploitation. Children and adults are sold to the lender like a commodity for a certain period of time and receive as wages just as much as they need to survive. In India there are around 1 million children, mostly girls and often barely 4 years old, who live in this form of slavery. 18 Human Rights Watch (HRW) exposed a form of debt bondage of migrant workers in Kazakhstan in 2010. Experts estimate that Kazakh plantation owners employ between and a million migrant workers each year, mainly from Kyrgyzstan. Many of these migrant workers, children as well as adults, have been turned into serfs, notes Jane Buchanan of HRW. For their part, the plantation owners are contractually obliged to Philip Morris Kazakhstan and supply the Philip Morris Interna onal subsidiary with raw tobacco. Although the work on the plantations is very dangerous, children from the age of 10 worked here as well. 19 It is predominantly girls who have to work in the tobacco fields in Indonesia well below the legal minimum wage. 20 children plow, weed, plant and assist the adults with the use of pescides in the Philippines. 21 In Bangladesh, 2 percent of all children work in the produc on and sale of tobacco products. 22 A ten-year-old boy describes the health effects of his nightly work in a drying facility as follows: I feel unwell. It's been like this since I was very little. When I run, my heart beats very quickly and makes a lot of noise. I am very short of breath. I have to work at night and not fall asleep. 23 The Na onal Plan of Ac on in Cambodia identifies the work of 10-17 year old children on the country's tobacco plantations as one of the worst forms of child labor. 24 I grow tobacco with my two children, explains Mr. Im Eau from Cambodia in the documentary The Tobacco Trap: Cycle of Poverty. When they come home from school, they have to help. My wife and I cannot do the job alone. Tobacco farmer Som Sokim adds: Everyone in the family, whether child or adult, has to work in tobacco growing W (II) I Godfrey Phillips has financed the Bravery Awards since 1990. Citizens are honored for idle deeds. Bravery Awards also initiates blood donation ac ons and supports the Amodini-Women s Empowerment Ini a ve, which, together with other NGOs, wants to help women in India to become financially more independent. 8 T The state-owned Thailand Tobacco Monopoly (TTM) provides the Thai Red Cross with funds. 9 I ITC, the market leader for cigars, initiated an IT training program for Indian farmers in 2000 so that they are connected to the formal market through a digital infrastructure. In addition, primary education, empowerment programs for women and environmental protection initiatives are sponsored. 10 M The BAT Malaysia Founda on contributed around US dollars to a program to reduce extreme poverty in Gua Musang (Kelantan). 11 P In 2010 Pakistan Tobacco Co Ltd (PTC) and Lakson Tobacco Co Ltd (LTC) took part in aid measures in the flooded provinces in Pakistan, probably in order to cultivate their image. 12 B BAT has been involved in reforestation (together with the forest authorities) since the 1990s.According to the BAT website, the aim is to preserve the forest areas and combat the negative excesses of climate change. According to this, 67.5 million young trees are said to have been planted throughout Bangladesh to date. 13th

9 ... The social turmoil caused by tobacco cultivation must also be viewed from a development perspective and include conditions of poverty, unfair contracts, child labor and debt bondage. In addition to the far-reaching effects on social relationships and human health, tobacco cultivation destroys the ecological basis of life. Pes cides and fertilizers lead directly to the contamination of water sources, the drying of tobacco with firewood has already led to massive deforestation: every year, tens of thousands of hectares of forest around the world fall victim to tobacco cultivation. 26 The production of cigars and cigars also leaves a large amount of waste. Above all, however, the demand for raw tobacco contributes to the fact that arable land is being lost for food produc on Alejandra Ellison-Barnes A family prepares the harvested tobacco for rocking (Kampong Cham, Cambodia). 1 h p: // (seen on). 2 O. Shafey et al. (2009): The Tobacco Atlas. S Food and Agriculture Organisa on of the United Na ons (FAO). h p: //faostat.fao.org/site/567/desktopdefault. aspx? pageid = 567 # ancor (Crops) and h p: //faostat.fao.org/site/377/desktopdefault.aspx? pageid = 377 # ancor (viewed on). 4 information for (seen on). 5 FAO. h p: //faostat.fao.org/site/567/desktopdefault.aspx? pageid = 567 # ancor (Crops) (viewed on). 6 In almost all Asian countries, the proportion of women who use tobacco in the total female population is less than 20%; only in Nepal is the percentage higher. (seen on) Altria separated from Philip Morris Interna onal, but kept the daughter Philip Morris USA in the group. 8 See ITC Ltd. (2009): Product launches h p: // In 60 countries that were included in the Global Youth Tobacco Survey (GYTS), there was no significant difference in the responses from girls and boys. It is assumed, however, that there is a particularly high proportion of male smokers at the age of years in relation to the total number of tobacco consuming populations in the ASEAN countries. In India this proportion is less than 7%; There was no static information on this from China. O. Shafey et al. (2009): The Tobacco Atlas. P. 24f. 9 O. Shafey et al. (2009): The Tobacco Atlas. S Figures for (as seen on) percent of the illegal cigars market in the USA and up to 80 percent in the EU are supplied with cigars from China. Campaign for Tobacco-Free Kids: The global toll of tobacco China. h p: // facts_issues / toll_global / china / (seen on). 12 Campaign for Tobacco-Free Kids: The global toll of tobacco India. h p: // global / india / (seen on). 13 O. Shafey et al. (2009): The Tobacco Atlas. P. 54. According to this, BAT, but also Philip Morris, smuggled cigars to Bangladesh for many years. Through a Singapore-based trading company (SUTL), BAT also succeeded in illegally transporting cigars to Afghanistan and China. After the end of the civil war in Cambodia, BAT defined the country as a strategic base for smuggling activities in the region. Asia is a key to the company's future [BAT, editor's note. Ed.] And his own documents show the dubious taks with which the company wanted to accelerate its penetration in the region, judges Jeff Collin, co-editor of research studies on the smuggling ac ons of interna onal tobacco companies, BAT-internal strategy papers. Bri sh American Tobacco Documents Archive. h p: //bat.library.ucsf.edu/history_lshtm2.html (viewed on). 14 Tobacco Free Ini a ve (TFI): Tobacco increases the poverty of countries. h p: // communica ons / events / wntd / 2004 / tobaccofacts_na ons / en / index.html (seen on). 7th

10 Double standards: Big Tobacco in Asia Marty Otañez (2008): Social disrup on caused by tobacco growing. Study conducted for the second mee ng of the Study Group on Economically Sustainable Alterna ves to Tobacco Growing - WHO Framework Conven on on Tobacco Control. 16 Hana Ross (2008): Regional Summary of Employment Studies. In: Southeast Asia Tobacco Control Alliance (SEATCA) (2008): Cycle of Poverty in Tobacco Farming Tobacco Cul va on in Southeast Asia. S h p: // rc i.org/bidirollinginindia_3.htm (seen on) (seen on). Stackhouse J .: Kielburger shi s focus to big business: Corpora ons asked to fight child labor. The Global and Mail Sep 30; Sect. A14. In: Marty Otañez (2008): Social disrup on caused by tobacco growing. S h p: // (seen:). Human Rights Watch's report Hellish Work: Exploita on of Migrant Tobacco Workers in Kazakhstan (2010) documents numerous cases of child labor in Kazakhstan's tobacco plantations. 20 United Na ons Children s Fund (1997): The State of the World s Children In: Marty Otañez (2008). Social disrup on caused by Tobacco growing. S Partners Interna onal (2002): Rapid Appraisal of Child Labor in the Tobacco Industry: Case Studies in two Ilocos Provinces Edmonds E .: Child labor. In: Schultz T, Strauss J, editors. Handbook of Development Economics, volume 4. Amsterdam, The Netherlands: Elsevier. In: Marty Otañez (2008): Social disrup on caused by tobacco growing. S Sven Irving (2007): Tobaccos Children. Documentary. h p: // 24 Understanding Children s Work (UCW) Program (2009): Towards elimina ng the worst forms of child labor in Cambodia by 2016: an assessment of resource requirements. Country report. h p: // a achment / child_labour_cambodiaii _ pdf (viewed on). 25 Tan Yen Lian, Southeast Asia Tobacco Control Alliance (SEATCA) (2011): The Tobacco Trap: Cycle of Poverty in ASEAN countries. h p: // (seen on). The video shows the plight of tobacco growers and the effects of tobacco growing in selected ASEAN countries. 26 See: Helmut Geist (1999): Global assessment of deforesta on related to tobacco farming. In: Tobacco Control, No. 8, S wellness campaigns 1 Cf. Guido Palazzo / Ulf Richter (2005): CSR Business as Usual? The Case of the Tobacco Industry, in: Journal of Business Ethics 61, S Bri sh American Tobacco (Cambodia) Ltd., Corporate Social Responsibility Program, (Social Responsibility in Tobacco Produc on), CAMBODIA CSR CONFERENCE November According to the BAT homepage, around Cambodians are economically dependent on the company. 3 See Guido Palazzo / Ulf Richter (2005): CSR Business as Usual? 4 h p: // pages / disaster_relief.aspx (viewed on). 5 See Southeast Asia Tobacco Control Alliance (SEATCA) (2008): Tobacco Industry Tac cs. A perfect decip on. Corporate Social Responsibility Ac vi es in ASEAN. S. 5. See also: h p: // inves ncambodia.com/batcambodia.htm (seen on). 6 h p: // (seen on). 7 h p: // on / pages / philippines_knowledge_channel.aspx (viewed on). 8 h p: // (seen on). 9 See Southeast Asia Tobacco Control Alliance (SEATCA) (2008): Tobacco Industry Tac cs. A perfect decip on. 10 ITC Ltd. (2011): 100 Inspiring Years Transforming Lives and Landscapes. h p: // Booklet-PDF.pdf (seen on). 11 h p: // (seen on). 12 p: // Pages / disaster_relief.aspx (viewed on). 13 h p: // (seen on). 8th

11 ... T, Neue Macht China Cigars, cigars, chewing tobacco tobacco products are part of everyday life in China. In the 16th century, the tobacco plant came to China via Japan and the Philippines. In the 1950s, the Chinese state took control of the tobacco business, causing foreign companies to leave the country. Bri sh American Tobacco, which received around half of its profits from the business with China, was particularly hard hit. In the course of the economic reforms at the end of the 1970s, many industrial and agricultural companies were able to operate wholly or in part without state control. However, the state monopoly on tobacco was reintroduced in 1982. The State Tobacco Monopoly Administra on (STMA) has controlled the Chinese tobacco industry since then. In order to be able to implement the planning specifications, the China Na onal Tobacco Corpora on (CNTC) was set up in 1984, to which all essential business processes must be applied for. Today the CNTC is the largest tobacco company in the world, a state monopoly with employees and over 183 cigar manufacturers who produce around 500 different brands of cigarettes. 1 As part of an ongoing consolidation policy of the STMA, the number of cigar manufacturers is to be reduced to around 100 profitable companies. 2 To achieve this goal, manufacturers are forced to close their production facilities, or large companies such as the Yizhong Tobacco Group or the Yuxi Hongta Group incorporate the smaller companies. Between 2006 and 2010, the Chinese tobacco industry grew by 19 percent. 3 Around 10 million people, factory workers, farmers and business owners live directly or indirectly from the state tobacco industry 4, which as a key industry plays an essential role in the development of the provinces. In order to be able to continue to achieve high profits and to keep foreign competitors away from the domestic market, import quotas, high tariffs and other trade barriers were introduced. 5 The international tobacco industry has focused on the Chinese market since the 1990s. Joint ventures, joint ventures produce foreign branded cigars. Advertising based on Western models has made its way. Philip Morris, BAT and R.J. Reynolds invested millions of dollars in advertising and sporting events such as the Marlboro Soccer League, the Beijing Salem tennis tournament and the 555 Hong Kong-Beijing car race. 6 Like other large tobacco companies, the Chinese tobacco industry has expanded its opera ve business. The country's largest cigar manufacturer, the Yuxi Hongta Group, is also active in the automotive and banking sectors, and operates star hotels, a motorway and a hydropower plant. 7 China is the world's leading tobacco producer and consumer, more than 40 percent of the globally traded raw tobacco is grown here, but only about 5 percent of it is sold by interna onal tobacco traders abroad. 8 At home, the raw tobacco is mainly processed into cigars 9, a total of 2.1 trillion pieces per year. This makes tobacco an extremely lucrative business for the Chinese government and the STMA and contributes 12 percent to na onal income - more than any other industrial sector. 11 The local cigars are relatively inexpensive, with the cheapest costing between US dollars per pack. Brand names are Happy New Year, Gold Medal, State Express 555, Red Plum Blossoms and many more. A pack of gold-filtered chunghwa, on the other hand, costs 10 US dollars 9

12 Double standards: Big Tobacco in Asia ... become. 12 Although Western cigars are considered a status symbol, their official market share is only 4 percent. The illegal cigar market increases this share many times over. The BAT product 555 (the most exclusive cigare es in the world) and Mild Seven from Japan Tobacco Inc. (JTI) are particularly popular, but so are Marlboro, Lucky Strike, Dunhill and Benson and Hedges. 13 We have 1.2 billion people, says Xu Mingzhong, deputy director of the Ningbo cigarette factory, and they are enjoying their glow sticks. 14 In September 2011, the Hongta Group launched the first organically produced cigars (organic, less harmful to health and highly aromatic) on the market. This is intended to meet the demands of consumers for high-quality natural products. The core area of ​​the model of organic tobacco cultivation covers a total of 578 ha. 15 In the hope of being able to further expand cigars production with the help of Western technologies, joint ventures have been set up in the past with, among others, BAT, R.J. Reynolds and Philip Morris approved. The giant R.J. Reynolds / CNTC's Xiamen factory produces 2.5 million Camel, Winston and Golden Bridges per day. Philip Morris and CNTC produce cigars in Shanghai, Ningbo and Tianjin, BAT / CNTC in Sichuan. 16 The Chinese tobacco industry is a global player. Various American blend cigars are produced for export to Southeast Asia. China Tobacco Interna onal Europe Company (CTIEC), in which the China Tobacco Anhui Industrial Corpora on in the province of Anhui has a 58 percent stake, will sell over 500 million cigars in 2011, and higher market shares are to be achieved, especially in Eastern European countries. In 2011, the Shanghai Tobacco Group (STG) opened up a total of 44 duty-free markets in 57 countries with competitive cigar brands such as Chunghwa, The Red Double Happiness, Zhongnanhai, Panda and Golden Deer. 17 STG has been producing the Memphis brand under license from JTI for eight years. In return, JTI produces Golden Deer. The strongest force among China's export-oriented cigars manufacturing is the China Tobacco Yunnan Industrial Corpora on (CTYIC). As a merger of the major domestic tobacco giants Hongta Group and HongyunHonghe Tobacco Group, CTYIC has acquired stakes in four overseas companies: Hong Kong Hongta, Laos Hongta, CTIEC and Myanmar Kokang. 18 CTYIC's cigar brands are sold in Southeast Asia, the Middle East, Central and South America, Africa and Eastern Europe, in more than 30 countries worldwide. 19 The Red Gold Dragon brand is manufactured by PMI in cooperation with the Chinese tobacco industry and is mainly exported to the Czech Republic and Slovenia. The Chinese tobacco industry is also involved through joint ventures in Mongolia, Iran, Myanmar and North Korea She has a view of the markets of India and Bangladesh. 20 As in other regions of Asia and the Pacific, betel nuts, which are rolled into a betel or tobacco leaf, are consumed in China. The $ 1.18 billion industry employs more than people in the administrative area of ​​Xiangtan alone. 21 In southwest China, the largest cigar production plant in Asia is to be built with an annual output of 2 billion cigars. China Tobacco Chuanyu Industrial Corp. (CTCIC) produces 80 percent of all cigars sold in China and exports the products to Macau, Russia, Egypt, Malaysia, Indonesia and the Philippines. In September 2008 the company and the Dutch cigar producer Royal Agio Cigars agreed to collaborate on research and development of production technology, cigar brands and raw materials. In return for the technology transfer, CTCIC participates in the Agio development centers for the produc on of quality tobacco for cigar manufacture. 22 Tobacco is grown in almost every province, but produc on is concentrated in a few 10

13 ... some provinces such as Yunnan, Guizhou, Sichuan and Henan. Cigar-specific tobacco is also grown on more than 333 hectares on Hainan Island and in Zhejiang Province. 23 Via the China Tobacco Leaf Produc on Procuring and Sale Corpora on, a division of STMA, contracts are concluded with tobacco farmers and the cultivation areas are determined. A tobacco farmer describes how it works: The Dor omitee convenes a village assembly. If you want to grow tobacco and on what area, you register. In return you get cheap fertilizers and it is also explained how tobacco is grown. 24 The seeds are also contractually agreed and delivered by state-owned companies at a fixed price. Tobacco growers are therefore completely dependent on the monopoly administration. No raw tobacco producer can freely sell tobacco or is authorized to trade in raw tobacco. Tobacco farmers have to sell their entire produc on to the state at a fixed price. The exchange of raw tobacco among and within the provinces is also based on the requirements of the STMA. Local governments are involved in the control system and assist in negotiations with the tobacco growers. Like other crops, raw tobacco is subject to a tax on agricultural products, which is a major source of income for the provinces in the tobacco-growing areas. 25 On the other hand, tobacco planting does not seem profitable for farming families. For example, the average income of tobacco growers in the Hongta administrative district in 2005 was only around a quarter of the average agricultural income. Tobacco growers complain in press reports that their annual income is only a tenth of the officially stated US dollar. There are also indications that farmers are being forced to grow tobacco. A farmer who gives his name by Yang says: Local authorities point to divisions from above, according to which every family should grow some tobacco. Since it doesn't make economic sense to grow tobacco, nobody does it voluntarily, he explains. 26 Smaller farms with 0.3 to 0.4 hectares of agricultural land dominate, of which only about a third to half is used for tobacco cultivation. Most tobacco growers produce edible crops in addition to tobacco. The responses to the decline in raw tobacco produc on in the 1990s showed that staple food, sugar cane and vegetables can be planted alternatively. However, this does not apply to tobacco farmers in regions with poor agronomic conditions. They are at risk of income if the demand for tobacco falls. 27 For the past 10 years, tobacco advertising on radio and television has been banned in China, as has the tobacco industry's promotion of sporting events. However, smoking bans do not apply to industrial manufacturing facilities and government offices. Social sponsorship is apparently popular with people. A survey found that 18 percent of Chinese prefer a cigar brand with social commitment. 28 Tobacco Industry Sponsored Schools have names like Tobacco Hope Primary School.In schools there are boards with slogans like Genius Comes From Hard Work Tobacco Help You Become Talented. 29 In dozens of villages in China's western provinces, children are the first to learn what makes their schooling possible: Tobacco Jeffrey Hays: Smoking, the tobacco industry, an -smoking and betelnut in China. h p: //factsanddetails.com/china.php? itemid = 140 & ca d = 11 & subca d = 74 (seen on). 2 Tobacco Facts. Cigare es Smoking Effects. Tobacco news and cigare es informa on. China Tobacco Produc on. h p: // on (seen on). 3 h p: // 11

14 Double standards: Big Tobacco in Asia ... (seen on). 4 h p: //factsanddetails.com/china.php? Itemid = 140 & ca d = 11 & subca d = 74 (seen on). 5 Cf. ibid. After China was recognized by the World Trade Organisa on, the import tariffs for tobacco were, however, cut dramatically (from 40 to 10%), and for foreign cigars from 36 to 25%. 6 h p: //factsanddetails.com/china.php? Itemid = 140 & ca d = 11 & subca d = 74 (seen on). 7 h p: // on (seen on). 8 O. Shafey et al. (2009): The Tobacco Atlas (2009). (seen on) Campaign for Tobacco-Free Kids: The global toll of tobacco China, h p: // toll_global / china / (seen on). The cigars enproduk on recorded an increase of around 40 percent compared to the year cf. german.china.org.cn from May 31, 2011 (as seen on). 11 h p: // on (seen on). 12 h p: //factsanddetails.com/china.php? Itemid = 140 & ca d = 11 & subca d = 74 (seen on) h p: // on (seen on). 3 p.m. p: // e-debuts-in-china.html (viewed on). 16 h p: //factsanddetails.com/china.php? Itemid = 140 & ca d = 11 & subca d = 74 (seen on). 17 h p: // onal-markets.html (seen on) h p: //factsanddetails.com/china.php? Itemid = 140 & ca d = 11 & subca d = 74 (seen on). 22 h p: //tobaccoasia.net/latest-issue/features/52-china-the largest-cigar-produc on-base-in-asia.html (viewed on) h p: // (viewed on). 25 In Yunnan Province, for example, 70 percent of tax income comes from the tobacco industry. See also: Food and Agriculture Organiza on of the United Na ons (2003): Issues in the global tobacco economy: Selected case studies. p: // p.fao.org/docrep/fao/006/y4997e/y4997e00.pdf (viewed on). 26 h p: // (seen on). 27 h p: //factsanddetails.com/china.php? Itemid = 140 & ca d = 11 & subca d = 74 (seen on). 28 h p: // + dir + talents + to + become / 509813 / detail.htm; (seen on). 29 h p: // html (viewed on)

15 ... M I Local companies still control the market With an annual revenue volume of around t, India is the second largest tobacco producer in the world 1 and the third largest exporter of raw tobacco. 2 Various types of tobacco are planted on a total of hectares of agricultural land 3, which is around 0.22 percent of the total land used for agriculture. From a global perspective, around 10 percent of the agricultural land currently used for tobacco cultivation is used in India alone. India's tobacco industry is divided into three major sectors - cigars, chewing tobacco and bidis. Every sector is a powerful factor in Indian politics. Bidi cigars are the most popular tobacco products, with a market share of 48 percent, followed by smoke-free tobacco (38 percent) and conventional cigars with a share of 14 percent. 4 All raw tobacco produced in India is sold on au k ons. Marty Otañez Child laborers pulling weeds on a tobacco field in Nellore, India Flue Cured Virginia (FCV) has a share of 6 percent of the total export volume, other important exports are Burley and Oriental. Companies like BAT, Philip Morris, R.J. Reynolds, Seita, Imperial, Reemtsma etc. and many state monopoly companies import Indian tobacco either directly or indirectly. The main importing countries of Indian FCV tobacco include Great Britain, Germany, Belgium, Russia, South Korea and South Africa. Over the past five years the rate of growth in tobacco and Indian tobacco products has increased by 76 percent. By contrast, India's share of the global cigar market is low at around one percent. Meaningful figures on how many people in India work in the tobacco industry are not available. 7 The government-funded Central Tobacco Research Institute (CTRI) puts their number at 36 million, including 6 million licensed and unlicensed tobacco growers and 20 million tobacco workers. In addition, there are around 10 million employees in processing, manufacturing and export business. 8 Mostly small farmers grow tobacco. Women, young workers of the Adivasi ethnic groups (so-called indigenous groups) and the so-called weaker sec ons are involved in the manufacture of tobacco products. Around 8.4 million people make a living from the production of hand-rolled tobacco leaves. Two million Adivasis work to make bidi as pickers of the tendu leaves. Poor crop yields, low-quality seeds and frequent natural disasters make it necessary for many small-scale farmers to develop additional sources of income. For them, the demand for raw tobacco seems to be a quick fix. In the past, this has led to an oversupply of tobacco and a consequent reduction in the price of raw tobacco. Many farmers' suicides across India in the past ten years have also affected small tobacco-growing businesses - people are no longer able to pay interest on loans and pay for seeds, fertilizers, pesticides, labor, firewood and transport . The chewing tobacco products widespread in India are mainly manufactured at home and for local markets. 9 They are extremely inexpensive, a package costs between 1-3 Indian 13

16 Double standards: Big Tobacco in Asia ... rupees, the equivalent of less than $ 0.10. Especially after the introduction of an India-wide smoking ban in public places and a tax increase for filterless cigars in 2008, the demand for chewing tobacco has increased. 10 The leading manufacturers include Dhariwal Industries Ltd., whose market share of smokeless tobacco was 12.5 percent in 2009, and Dharampal Satyapal Ltd., with a market share of 7.2 percent (2009). 11 A 24 S B The produc on of bidi cigars is labor-intensive and includes growing tobacco, picking and collecting the leaves of the tendu tree and rolling and packing the bidis. Tobacco growers, for example, produce dark tobacco suitable for bidis. From May onwards (until the onset of monsoon), predominantly women and children collect the leaves of the tendu tree needed to make the bidi cigars. 23 Approximately t tobacco and t Tendu leaves are required annually for bidi produc on in India. 24 For nine months outside the picking season there is hardly any income for the pickers. The bundles of 50 to 100 leaves are kept until bidi is made. A family can pack bundles a day, for 100 bundles 55 Indian rupees (1.20 US dollars) are paid. 25 In every Indian state there are an average of around 200 bidi cigare factories, but the produc on is an 80 percent homework industry in which the majority of women are employed. 26 The All India Bidi, Cigar, and Tobacco Workers Federation estimates their share as a percentage of the total number of employees. 27 According to government figures, 30% of all children involved in making bidis are under 14 years of age. Like adults, child workers suffer from respiratory diseases, skin and eye problems, green tobacco sickness, asthma, TB and chronic back pain. 28 Girls in particular are forced to swap school for a long day at work rolling the bidis. 29 The estimate of the annual amount of Bidis produced varies between 750 billion and 1.5 trillion. 30 The daily rolling quota is at bidi-cigars. If a ten-hour working day and a daily produc on of Bidis are taken as a basis, a bidi cigar is produced every 24 seconds in home work. 31 The workers get the tobacco and the leaves from dealerships, to whom they resell the rolled bidis. An average of 1 US dollar is paid for bidis, an extremely low salary even by Indian standards. The statutory minimum wages in the bidi industry vary from state to state. Since most of the manufacturing takes place in the informal sector, it is difficult for authorities and civil society groups alike to monitor compliance with labor and minimum wage regulations and to take action against child labor. Companies and authorized dealers rely on the low level of organization among workers and little is being done by the legislator to improve working conditions. 32 A 2003 study by the Interna onal Work Organisa on (ILO) among women bidi workers in a southern Indian state shows that only nine percent of them were unionized. 33 There are an estimated 100 million bidi smokers in India. 12 Bidis are the cheapest form of intoxication, explains tobacco analyst Sarkar. The bidi market will continue to grow as long as the lobbyists are able to fill the suitcases of the police. 13 The largest bidi manufacturer in India is the CeeJayGroup in the state of Maharasthra. The company, which is owned by the family of India's Beedi King Praful Patel, employs around 1,000 people. In 1999 Praful Patel let himself be carried away to say that the bidi industry was the best employment op on for poor, rural women. Like knitting, making bidis is a finely tuned and pleasant activity. 14 There are about 300 different brands of bidi, but not a single brand is sold in all states. Just like chewing tobacco, bidis are mainly offered in around 10 million mom-and-pop shops and in street stores. 14th

17 ... The cigar market is controlled by local companies; however, almost all cigar factories are linked to transna onal tobacco companies. The market is divided between three large companies: ITC Ltd. 15, Godfrey Phillips India Ltd. (GPI) and Vazir Sultan Tobacco (VST), together they achieve a market share of 97 percent, of which ITC Ltd. alone holds a share of 75 percent (2010). 16 According to the Voice of Tobacco Vicms, an association of oral cancer spas, doctors and civil society organizations, the largest state life insurer, the Life Insurance Corpora on of India (LIC), has acquired 17 Indian crore in the past two years for a total of 17 crore Rupees shares in ITC and VST as well as bonds to 2008 Alejandra Ellison-Barnes In 24 seconds a bidi (India) is made from a pile of green tobacco, a tendu bla and a string. Dharampal Satyapla Ltd. 18 BAT also still holds a 32 percent stake in ITC (as well as in VTS). Surya Nepal, ITC's Nepalese subsidiary, is a joint venture with BAT. 19 GPI sells raw tobacco at home and abroad and has the Indian KK Modi-Group (Mumbai) and Philip Morris Interna onal (PMI) as main ac onaires. In 2009, PMI approved the produc on of Marlboro in India under the direction of GPI. 20 JTI is also active in the Indian cigar market and currently holds a 50 percent share in JTI-India. The ban on foreign directors (FDI) in the Indian tobacco industry, which has existed since April 2010, and which also applies to companies in the special economies (SEZ), makes it more difficult for the mul na onal tobacco companies PMI, BAT and JTI operating in India to gain market shares to increase. 21 Government policy and the tobacco industry are closely interwoven in India. For example, the Indian Tobacco Board regularly sponsors tobacco industry events, grants loans and grants for tobacco farmers and sets minimum purchase prices for raw tobacco. In addition, the research of the CTRI and its affiliated institutes, which deal with the question of increasing yields in tobacco growing, is financed by the Indian government. There are only a few tobacco campaigns and the media's interest in health issues is mostly directed towards the situa on in urban centers. 22 Although there were laws to control the tobacco market and in the work processes of the tobacco control convention on FCTC, India played a leading role, but the legal possibilities are rarely effectively implemented, to the delight of the tobacco industry, which can continue to make unhindered profits from tobacco products. 1 Central Tobacco Research Institute (2011): Vision h p: // ons / CTRI% 20Vision% pdf (viewed on). For comparison: in 2007 it was approx. 2 O. Shafey et al. (2009): The Tobacco Atlas, S Flue Cured Virginia (FCV), Bidi tobacco, Hookah tobacco, chewing tobacco, Cheroot tobacco, Burley, Oriental, lu dried (Burley) HDBRG, Lanka, Pikka, Natu, Mo hari, Ja ua Cheroot is a cylindrical cigar that is trimmed at both ends. 4 Emil M. Sunley (2008): The Tax Treatment of Bidis. h p: //tobaccofreeunion.org/assets/home/sunley%20bidi%20tax% 20Report.pdf (viewed on). 5 h p: // onal.com/0309/feature.htm (seen on). 6 Central Tobacco Research Institute (2011): Vision

18 Double standards: Big Tobacco in Asia ... 7 Voluntary Health Associa on of India (2010): At the Crossroads of Life and Livelihood: The Economics, Poverty and Working Conditions of People Employed in the Tobacco Industry in India. Final Narra ve Report. h p: // www. healthbridge.ca/assets/images/pdf/tobacco/tobacco_poverty_appendix%204%20india%20final%20narra ve% 20rep ort.pdf (seen on). 8 Central Tobacco Research Institute (2011): Vision h p: // (viewed on). 10 h p: //dilbaghgroup.com/hot.htm (seen on). 11 h p: // (seen on). 12 See P.C. Gupta ed. (2008): Bidi Smoking and Public Health. In: Voluntary Health Associa on of India (2010): At the Crossroads of Life and Livelihood. 13 h p: // a ves (seen on) ITC Ltd. stood for India Tobacco Company Limited until 2001. Due to the diversification into other business sectors such as hotels, IT or food, ITC is no longer the abbreviation, but the name of the group. 16 h p: // (seen on). 17 Crore is the South Asian numeral for 10 million. 18 h p: // (seen on). 19 ITC Ltd. Surya Nepal Private Limited. h p: // (seen on). 8 p.m. p: // mesofindia.india mes.com/business/india-business/marlboro-man-rides-into-indian-terrain/ ar cleshow / cms (seen on). 21 h p: // (seen on). 22 h p: //southasia.oneworld.net/opinioncomment/indias-tobacco-war (seen on). 23 See Voluntary Health Associa on of India (2010): At the Crossroads of Life and Livelihood. 24 See Sharma Ashok B (2008): Ministries paper poses threat to bidi sector. In The Financial Express. In: Voluntary Health Associa on of India (2010): At the Crossroads of Life and Livelihood. 25 See Voluntary Health Associa on of India (2010): At the Crossroads of Life and Livelihood. 26 h p: // London (seen on). 27 According to other sources, the proportion is around 75 percent. See: Voluntary Health Associa on of India (2010): At the Crossroads of Life and Livelihood. 28 Voluntary Health Associa on of India (2008): Caught in a Death Trap. 29 See P.C. Gupta ed. (2008): Bidi Smoking and Public Health. In: Voluntary Health Associa on of India (2010): At the Crossroads of Life and Livelihood. 30 Emil M. Sunley (2008): The Tax Treatment of Bidis. 31 see also Campaign for Tobacco-Free Kids (2008): Bidi Industry in India. Welfare and Working Conditions. h p: // global.tobaccofreekids.org/files/pdfs/en/iw_facts_products_bidis_welfare.pdf (seen on) Interna onal Labor Organiza on (2003): Making Ends Meet - Bidi Workers in India Today. A study of four states. 16

19 ... N M Indonesia and Malaysia as markets of the future In 1880, cloves were mixed with tobacco in Java, the most important region of the Dutch East Indies. A century later, kreteks became synonymous with cigars in Indonesia and are mostly made by hand. Like in Kretek City in Kudus on Central Java, where women workers make Kreteks in pairs per day in the city's factories: one worker takes a small amount of tobacco and stops it in the rolling machine, while a second cuts off the ends of the cigars and collects the number for a packet of Kretek cigarettes. 1 Hand-rolled kreteks cost around one US dollar per packet and are less expensive than the machine-made white cigars. 2 A total of 6 million people work directly or indirectly in the produc on of Kretek cigars. 3 The five leading manufacturers (by market share) are Gudang Garam Tbk PT, HM Sampoerna Tbk PT (Philip Morris Interna onal), Djarum PT, Bentoel Internasional Investama Tbk PT (BAT) and Nojorono Tobacco Indonesia PT. 4 In 2005, PMI bought the Indonesian company Sampoerna for 5 billion US dollars, thereby controlling 30 percent of the domestic cigar market. This made Sampoerna the largest tobacco company in Indonesia, followed by Garam and Djarum, BAT acquired 85 percent of the shares in Bentoel for around 494 million US dollars. 5 For Ma hew Myers, President of the Campaign for Tobacco Free Kids, Indonesia is something like the Wild West for the tobacco industry. We see branding methods here that we have not seen in the West for 20, 30 and 40 years. 6 The advertising strategists are primarily targeting young adults. ABC News reported in September 2011 internal PMI documents from 2005 showing that the Sampoerna A-Mild brand (a blend of Java tobacco, American and other high-quality tobacco leaves) has become the brand of choice for young adults should be. 7 The branding of the cigar industry also means that social networks such as Facebook, Twier and others are increasingly being used for advertising. 8 The cultivation and sale of tobacco contribute up to 10 percent to government revenues.The tobacco companies claim to have paid the equivalent of 6.4 billion US dollars in taxes in 2009. According to figures from 2004, 225 large and 585 medium-sized companies are involved in tobacco production in Indonesia. 9 Of these, around two-thirds are involved in the drying and processing of tobacco leaves, 29 percent produce kreteks and 1.2 percent white cigars, with the large corporations dividing the market among themselves. In 2005 there were tobacco workers who were employed for 4 months during the season. 10 Although a decline in the agricultural area for tobacco cultivation was observed over the period, cigare enproduk on s eg at the same time, which can be attributed to the import of raw tobacco. In three provinces alone, 96 percent of tobacco is produced in Indonesia (East Java, Central Java and West Nusa Tenggara), the other four percent are distributed between the provinces of Yogyakarta, North Sumatra, West Java and Bali

20 Double standards: Big Tobacco in Asia ... According to a study by Ernst and Young from 2005, the Malaysian tobacco industry employs around people. Tobacco grows primarily in the main growing areas of Kelantan, Terengganu and Sabah on the east coast of the peninsula. Around people work in cultivation and tobacco drying. 12 When the ASEAN Free Trade Area (AFTA) came into force on January 1, 2010, Malaysia had to lower tariffs on imports of raw tobacco and packaging materials and open its market for products from neighboring ASEAN countries Pack of branded cigars are an alternative to the tobacco plant. solid rising. The tobacco industry regards the rise of the illegal cigar trade as a direct consequence of this policy. According to a study by Goldman Sachs, the country is now at the forefront of the global illegal cigar trade. 13 In order to be prepared for the negative effects of the market opening, declining demand for raw tobacco and loss of income, the Malaysian government developed programs for tobacco farmers a few years ago to make it easier for them to switch from tobacco cultivation to alternative crops. Kenaf and tex l fibers played a role in the considerations, as did jatropha and molecular or bio farming, the manufacture of medicines, vaccines and bodies from genetically modified tobacco plants mes.com.au/ac on / printar cle? Id = (seen on) hp: //euromonitor.com/tobacco-in-indonesia/report (seen on). 5 Andreas Harsono (2011): Public Health suffers as Indonesia ignores calls for tobacco reform. H p: // www. andreasharsono.net/2011/09/public-health-suffers-as-indonesia.html (viewed on). 6 h p: //abcnews.go.com/health/age-children-smoking-indonesia/story? Id = # .tyfcpyf6gvj (seen on). According to estimates by the 2009 Global Adult Tobacco Survey, 28.3% of the population over the age of 15 in the Philippines smoke regularly. See Department of Health (2010): Philippine Global Adult Tobacco Survey 2009 Fact Sheet. The 2007 Global Youth Tobacco Survey found that 17%, or around four million, of 13 to 15 year olds in the Philippines regularly consume cigars. See Department of Health (2008): Philippine Global Youth Tobacco Survey 2007 Fact Sheet. 7 A-Mild does not just understand the spirit o the new genera on of Indonesians, but it is also their spirit / their voice, it says in it. h p: //abcnews.go.com/health/age-children-smoking-indonesia/story? id = #. TyfcpYF6GVJ (seen on). 8 h p: // (seen on). 9 Tobacco Facts. Cigare's Smoking Effects. Tobacco news and cigare es informa on. Indonesia Tobacco produc on. h p: // on (seen on). 10 h p: // on (seen on). 11 h p: // on (seen on). 12 BAT Malaysia: Tobacco's economic contribu on. h p: // vwpagesweblive / do7sukf6? opendocument & skn = 1 (viewed on). 13 BAT Malaysia (2011): Annual Report h p: // vwpagesweblive / do7suksj / $ file / medmd8fac73.pdf? Openelement (viewed on). 14 Ahmad Ibrahim (2008): The alterna ves for tobacco farmers. In: Checkbiotech Newsle er March 12th h p: // greenbio.checkbiotech.org/news/alterna ves_tobacco_farmers (seen on). 18th

21 ... C P Joint Ventures - a death knell Cowboys are the name given to the middle men of interna onal tobacco companies such as Con nental Leaf Tobacco Philippines and Universal Leaf in the Philippines. The island nation is one of the world's largest tobacco producing countries. In 2010 around t of raw tobacco were produced, in 2007 it was still around t. Tobacco is grown in 20 provinces of the Philippines, with produc on concentrated in the northern provinces of Ilocos Norte, Ilocus Sur and Abra. Virginia tobacco is most commonly grown. Unprocessed tobacco is exported to the USA, Belgium, South Africa, South Korea and Malaysia, Filipino tobacco products to Thailand, South Korea, Singapore, Malaysia and Vietnam. Total abak exports reached a total of t of raw tobacco in 2009, and the economy was expecting an increase in 2010 and About 85 percent of the raw tobacco bought by Universal Leaf is negotiated through contracts with cowboys or directly with the buyer, with the tobacco dealers assuring that previously agreed prices for the raw tobacco will be paid regardless of market fluctuations. 2 For further processing in the Philippines it is of central importance that the manufacturing companies are largely independent of raw tobacco imports. 3 F K T In June 2010 the Supreme Council of Darul I a in the Philippines unanimously approved a fatwa directed against smoking. According to Sharia h and Islamic legal doctrine, tobacco consumption is considered to be polluting, unclean and destructive for one's own (and that of others) body, since tobacco contains numerous chemicals that are dangerous to humans. Therefore smoking is forbidden for Muslims and Muslims. The cultivation of tobacco and the production of cigars, the trade with and the promotion of tobacco products are also declared haram, i.e. forbidden, in the legal opinion of the Islamic clergy from June 2010. Philippine health authorities and consumer advocates welcomed the verdict and linked the fatwa with the hope of a decline in tobacco consumption in the Philippines. 1 Whether fatwas that are directed against smoking have a positive effect on the consumption habits of tobacco users has not yet been proven empirically. According to E. Ulysses Dorotheo, project director of the Southeast Ini a ve on Tobacco Tax (SITT), the fatwa was accepted in the southern part of the Philippines (which is also known as the autonomous region of Muslim Mindanao / ARMM). Tobacco cultivation is only operated to a small extent in this region, so that the increase in the region mainly relates to tobacco consumption. 2 The tobacco fatwa, which was issued by Shi'i clergy in 1891 during the tobacco movement in Iran, has become legendary as an an -colonial revolt. The then Shah had given the British the monopoly in the Iranian tobacco trade. Sales collapsed and the license was withdrawn. According to the 2010 fatwa, not only is tobacco consumption banned, but also tobacco planting. 1 it (seen on). 2 E. Ulysses Dorotheo, Southeast Asia Ini a ve on Tobacco Tax (SITT), in a correspondence with the author in December Tobacco was grown in the Philippines as early as the late 16th century and quickly developed into a profitable resource for the Spanish colonial regime . Even today, tobacco plays a significant role in government revenues. Around 84 million cigars are consumed every day, most of which are sold in sari-sari shops and street retailers. After the demand for cigars declined in 2009 (as a result of the global economic crisis, but also due to price adjustments as a result of an increase in tobacco taxes in 2007), an increase has been observed since 2010. 4 In order to win new customers, tobacco companies have started producing so-called feminine cigars with peppermint or chocolate flavor. Even with packaging in pastel tones or with floral patterns, women in particular should be reached as customers. 5 19

22 Double standards: Big Tobacco in Asia ... Tobacco farmers in the Philippines must quickly realize that they have little influence on pricing and financial security. In addition, the contract cultivation also leads to informal lenders charging higher interest rates, with the consequence of further loss of income. Tobacco growers blame the credit system for their low incomes. 6 The livelihoods of the more than 2 million tobacco growers in the Philippines are also threatened by recurring natural disasters and the associated crop failures. In September 2011, the Philippine government announced the increase in the minimum purchase price for raw tobacco from the 2012/2013 harvest season by 25 percent per kg. Tobacco prices are negotiated through a system of negotiations between the Na onal Tobacco Administration (NTA), the tobacco manufacturers and the tobacco farmers. A few weeks earlier, tobacco growers from the provinces of the Ilocus region and from Abra in the Cordillera administrative region, after meeting with the Solidarity of Peasants Against Explota on (Stop Exploita on) campaign, demanded an increase in tobacco prices for unclassified tobacco by up to 50 percent in some cases . In unfair trading relationships with companies and policymakers involved in the tobacco trade, they see themselves as having no opportunities. 7 It is clear, as a farmer is cited by Stop Exploita on, that there is a tacit agreement between NAT, local polic y and trading companies such as Philip Morris Interna onal and Universal Leaf Corpora on, tobacco prices (also in this one Year) to continue pressing. 8 A study carried out by Stop Exploita on shows that tobacco farmers work an average of 157 working days per cultivation cycle. The input costs them around 800 US dollars per season, plantation workers receive a wage of the equivalent of 4.16-5.08 US dollars per day. According to the study, contract farmers are not in a much better position. In February 2010, a 50/50 joint venture between Philip Morris Interna onal and Fortune Tobacco Corp., a company that mainly produces cigars for low and middle income earners, was agreed. The two companies now control over 90 percent of the $ 1.7 billion market. Local media describe the merger as a death blow for the Filipinos. 9 In January 2010, PMI invested around 23 million US dollars in a warehouse and a square meter site at Subic Bay Freeport interna onal airport, a former base of the US Navy. The leasing deal with the Subic Freeport Zone Authority was concluded for a period of 50 years. The decision of transna onal cigar companies to invest in the Philippines may also be related to the fact that the high import tariffs for tobacco products (in some cases up to 60 percent) are due to a free trade agreement between the ASEAN states Thailand, the Philippines, Singapore, Malaysia and Indonesia be reduced. From their production facilities in the Philippines, the regional market can then be supplied with their tobacco products at lower costs than before h p: // (as seen on). 2 h p: // cles-q1-2009 / 53-the-philippines-where-tobacco-is-king. html (viewed on). 3 4 h p: // (seen on). 5 h p: // scha enblick.de/infopool/poli k / ausland / paasi631.html (seen on). 6 Yolanda Sotelo-Fuertes, Life a er Tobacco: Farmers Shi to Corn. Philippine Daily Inquirer Manila, August 4, 2008, in: Southeast Asia Tobacco Control Alliance (SEATCA) (2008): Cycle of Poverty in Tobacco Farming. S hp: //bulatlat.com/main/2011/09/12/tobacco-farmers-want-an-increase-in-buying-price-of-their-harvest-to-p128- per-kilo / (as of ). 8 9 h p: // (seen on)

23 ... O I Standard tobacco yields In Pakistan, too, the tobacco industry is traditionally a reliable source of income for the state. Over five percent of all taxes are generated with levies on tobacco products, and Pakistani consumers pay some of the highest consumption taxes on tobacco products worldwide. 1 Nevertheless, around 20 percent of the adult population (18+) regularly smoke tobacco, primarily in the form of cigars and cigars. 2 Water pipes (sheehsa) are also widespread; Smokeless tobacco is mainly used in the form of pan masala, guthka or naswar. Over a million people are directly or indirectly employed in tobacco growing, processing and trading in tobacco. 3 Industry is oligopolistic. Pakistan Tobacco Co Ltd (PTC), a BAT subsidiary, and Lakson Tobacco Co Ltd (LTC), owned by Philip Morris Interna onal, together control 78 percent of the market. 4 Other local and interna onal companies (such as Souvenir Tobacco Company, Saleem Cigare e Industry, Universal Tobacco Company, Imperial Cigare e Industry, Khyber Tobacco) mostly produce inexpensive cigars for rural regions. 5 A PTC study from August 2010 indicates that only 81.5 percent of the more than 80 billion cigars sold annually in Pakistan are also taxed. Brand counterfeiting and smuggled cigars have a market share of 18 percent. 6 According to the Pakistan Tobacco Board, more than t in 2009 and up to t in 2010 of raw tobacco were produced in Pakistan. 7 Local oriental tobacco varieties are grown in the plains of the Northwestern Border Area (NWFB) and in the provinces of Punjab, Sindh and Balochistan. Punjab Province is known for dark, sun-dried hookah tobacco. All raw tobacco processed in Pakistan is harvested in the country, with the exception of tobacco imports for cigars in the higher price segment. FCV, sun-dried Rusca (White Pa a) and Burley tobacco are exported. 8 Tobacco is one of the few crops in Pakistan whose yield per hectare can keep up with interna onal standards. The tobacco-growing areas of Pakistan were badly affected by the floods in 2010. The tidal waves first hit the province of Khyber Pakhtunkhwa in northwestern Pakistan, later the provinces of Punjab, Balochistan and Sindh, in which up to acres of arable land were flooded. Tobacco is grown in these provinces on a total area of ​​around hectares. 9 While the tobacco industry insisted that the tobacco sector did not suffer any serious damage from the floods, the tobacco growers complain about losses and are demanding compensation from the government. 10 The minimum purchase price set by the government for 2011 of the equivalent of 1.19 US dollars per kg is also criticized as too low and as a result of the sloppy government policy, which is forcing tobacco growers to grow less tobacco hp: // (viewed on ). 2 h p: // (seen on). 3 h p: // (seen on). 4 h p: // (seen on). 5 h p: // (seen on), as well as h p: // doc / / tobacco-industry-basic (seen on). 6 h p: // findar cles.com/p/ar cles / mi_hb092 / is_2000_nov / ai_n / (seen on). 7 h p: // (seen on). The FAO puts the quantity of raw tobacco produced in Pakistan in 2010 at t. Compare: h p: // faostat. 21

24 Double standards: Big Tobacco in Asia ... fao.org/site/567/desktopdefault.aspx?pageid=567#ancor (viewed on). 8 h p: // (seen on). 9 h p: // (seen on) h p: // (seen on). B W In only a few countries did the tobacco industry enjoy as much freedom as it did in Cambodia after the end of the civil war in the early 1990s. A movement among the country's Buddhist monks is now supposed to support the Cambodian government in ensuring that Cambodians consume less tobacco products in the future. Tobacco is used for various purposes in Cambodia. Buddhist monks receive cigars as gifts for religious acts, the bride and groom distribute cigars to the wedding guests, cigars are used for bribes and a popular belief is that the smoke from tobacco chases mosquitoes and other insects away. In a society in which 93 percent of the population is Buddhist, monks exert a great influence, especially on questions of behavior and belief. The 2000 BMJ Publishing Group Ltd. Thank you for not smoking the questioning of cigar consumption is still an exception in Cambodia. Buddhist monks have declared their pagoda in Phnom Penh to be a smoke-free area. Buddhist philosophy strictly rejects the use of harmful and addictive substances. Wat 1 are often associated with secular schools. If monks refuse to accept cigars as gifts for religious ceremonies, this has a major impact on tobacco consumption patterns. For many communities in Cambodia, a smoke-free wat or a monk who has given up smoking and recommends not to smoke is the first personal experience with an authority that questions the social acceptability of tobacco use. The Cambodian government has therefore asked all monastery members to live smoke-free and to educate society about tobacco consumption and health. The initiators are convinced that the movement can also be successful in other countries where Buddhism is the predominant denomination, for example in Myanmar, Laos and Thailand. 1 Wat is the Khmer term for a Buddhist monastery or pagoda. The smoke-free wat movement was established in 1999 by the Advent Development and Relief Agency (ADRA) in collaboration with the Cambodian Ministry of Beliefs and Religion, the Ministry of Health and respected Cambodian monks. See.on this: World Health Organiza on, Western Pacific Region (n.d.): Best Practices in Tobacco Control. Cambodia s Experience with smoke-free Buddhist Monks and WATS.h p: // int / nr / rdonlyres / b07e573d e4f b07e21 / 0 / bestprac cesforsfmonksproject.pdf. 22nd

25 ... T N Court in Bangladesh bans tobacco cultivation The UN World Food Program estimates the number of people living in extreme poverty in Bangladesh at 28 million. 1 They are hit particularly hard by rising food prices. Small farmers in Bangladesh also belong to the poorer population groups. Because they are hoping for higher profits, they are switching from growing rice and other foodstuffs to producing tobacco. The tobacco companies generously provide them with seeds, fertilizers, insecticides and loans to pay off the plantation workers. Many tobacco growers only understand later that tobacco growing is not a profitable business, says Syed M. Alam, Secretary of the An Tobacco Alliance Bangladesh (BATA). 2 When tobacco growers have borrowed financially from companies and private lenders, it is hardly possible to go back. Guaranteed minimum prices for raw tobacco are promised 3, but the guaranteed prices are not kept in many places. 4 About a dozen tobacco companies, including BAT, Dhaka Tobacco, Abul Khair Tobacco and Nasir Tobacco, are involved in the tobacco industry in Bangladesh. 5 Tobacco has only been planted there since the 1970s, and in the mountain regions since the 1980s. Even if few figures are available, it is assumed that cultivation has con nuously expanded in recent years in a country in which until a few decades ago Ubinig tobacco companies assured farmers high purchase prices for raw tobacco, but don't keep these promises. The tobacco growers are upset and angry because of this. In March 2010, in some villages in the Kusha district, they made dolls to represent the tobacco companies. The scarecrow-like dolls hold lanterns in one hand (Disappear!), And in their back is a bamboo cane. The cardboard sign says: The Lord and Master has grown tobacco and that is why we give him unpolished bamboo (we drive it out with the bamboo cane). exclusively subsistence farming was operated. During the period, tobacco was grown on an agricultural area of ​​ha, three years later the acreage was already ha, an increase of 141 percent within just three years. 6 Ja, Mo hari and Virginia tobacco are mainly grown. The former tobacco varieties grow in the regions of Rangpur and Bandarban, Virginia, however, mainly in Kush a, Rangpur, Jessore and Dhaka. Presumably there are farmers in Bangladesh who grow tobacco. 7 Around a quarter of them work under contract with BAT, the others with five other tobacco companies. 8 Every year, in the three mountain regions of the Chi agong Hill Tract (CHT) alone, t of firewood is required for drying FCV and local varieties. Around farmers plant tobacco in this region. 9 Tobacco growing not only drives tobacco growers into financial ruin, tobacco also destroys soils and forests and thus the ecological foundations of human life. 23

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