CTC says may have to import tobacco if supply constraints continue

Sri Lanka’s monopoly cigarette maker Ceylon Tobacco PLC (CTC), a unit of British American Tobacco (BAT), says it may have to opt to import tobacco if the adverse weather pattern or restrictions on cultivation of tobacco continue.

According to the outgoing CTC Chief Executive Officer Felicio Ferraz, 100 percent of the tobacco leaf used in the manufacture of their products is grown locally. “If extreme weather patterns continue or unreasonable cultivation restrictions are imposed on domestic leaf production, the only solution would be to import tobacco leaf from other countries, which is a loss for the economy of Sri Lanka – loss of hard currency, loss of value infused in rural areas and loss of jobs,” Ferraz said.

Both Ferraz and CTC Chairman Susantha Ratnayake hailed the measures taken to extend the pictorial health warnings to beedi and slapping higher levies on beedi products. In 2015, beedi accounted for 43 percent of the total tobacco market in Sri Lanka, compared to 20 percent in 2007. Meanwhile, Ferraz said BAT had taken a stance to invest seriously in research and development to create less harmful alternative cigarette products.

“BAT has developed next generation products, which include vapour products such as E-cigarettes, which are gaining popularity in many countries. Combustible cigarettes are also being improved through innovations in filters and ingredients. We see a future in both types of products moving forward and BAT is geared to win in both segments.” Citing the World Health Organisation (WHO) findings, Ferraz said in 50 years’ time, the volume of cigarettes consumed is likely to remain the same.