Deni Wahyudi Kurniawan

TOBACCO FARMING

Indonesian Institute for Social Developmentwww.iisd.or.id | www.deniwk.com | @deniwk

FARMERS VS TOBACCO CONTROL

The issue of Tobacco Farmers and Tobacco Economy is two

main weapons that always used by tobacco industry to hamper

tobacco control measures.

500.000 farmers

leave agriculture

sector annually

BASIC PROBLEMS AGRICULTURE SECTOR1. The increasing of environmental problems and climate change

2. Availability of infrastructure, facility, land and water supply

3. Status and width of land owned by farmers (9,55 million family < 0.5 Ha)

4. National seed and seeding systems has not run optimally

5. Lack access to capital / banking and high interest for agricultural credit loan

6. Lack of farmers supporting institution and farmers education/instructor

7. The threat of food security and energy security8. Food Diversification is not going well

9. Low exchange rate of farmers / bargaining position

10. Incoordination among sectors and support system of agriculture development

11. Underperformance of agricultural bureaucracy service.

Renstra Kementan 2010-2014

TOBACCO IN THE WORLDTobacco is grown in 124 countries, occupying 3.8 million hectares of agricultural land. Michael Eriksen, dkk. 2012. Tobacco Atlas (Georgia: American Cancer Society).

INDONESIA TOBACCO NET IMPORTER

TOBACCO AND GOVT STRATEGIC PLAN

In general government priority in agriculture sector is food security toward food self sufficient program. Priority commodity : Rice, Soybean, Sugar, Corn, Beef / Buffalo.

Tobacco is one of 39 national priority commodity. Target to increase production to 184 thousand ton and 893 kg/ha productivity in 2014.

Tobacco target : export, local industry supply, substitution for import.

>90% TOBACCO INDONESIA IN 3 PROVINCES

9 PROCESS OF TOBACCO CULTIVATION1. Tillage

2. land management

3. manufacture ’guludan’

4. removal of seeds

5. Cultivation

6. plant maintenance

7. Pruning

8. The flush; and

9. processing results

Source: ”Petani Tembakau Indonesia : Sebuah Paradoks Kehidupan” "Indonesian Tobacco Farmers: A Paradox of Life"

REASONS TO PLANT TOBACCO1. there is market Cigarette Industry

2. incentives from the Tobacco Industry in the form of loans or goods

3. lack of alternatives other commodities the same benefits

4. more profitable than other crops

5. In some developing countries farmers are relying on tobacco to earn income, while in developed countries they have other income from other commodities and also of integrated farming.

6. Can be grown on land that is narrow

7. Perceived to have a stable price

REASONS TO QUIT PLANTING TOBACCO1. Intensive / Labor Intensive

2. High Cost Cultivation / Low Returns

3. Health disorders

4. Controversy Tobacco or Health

5. The availability of infrastructure such as irrigation farming which allows other commodities

TOBACCO FARMERS PROBLEMS1. High Production Cost

4. DIFFICULTY IN ACCESSING CAPITAL

2. GREEN TOBACCO SICKNESS

3. UNFAIR TRADE SYSTEM

Handewi P. Saliem, “Permasalahan dan Tantangan Pertanian Tembakau serta Solusinya”, Makalah yang dipresentasikan pada FGD Pertanian Tembakau, Bogor, 16 Oktober 2014.

3. CLIMATE ANOMALY

4. IMPORTED TOBACCO

5. GOVT COMMITMENTThere is no one roof policy for farmers

Ministry of Agriculture : Increasing tobacco production

Ministry of Industry : Reserving Tobacco Industry

Ministry of Trade : Import and Export Tobacco Leaf.

Mindset

TOBACCO or HEALTH???? (long debate)

SOLUTIONSFirst, support for crop alternative, shifting to another crop. Need comprehensive support and policy from the government.

Second, farmers who want remain in tobacco cultivation should be assisted to increase its productivity with price control policy.

Third, Tobacco product diversification. Such as organic pesticide, parfume etc.

TOBACCO SHIFT CROP EXPERIENCEThere is no research on tobacco crop shifting in Indonesia. Crop shifting need support from government and society.

Current experience is individual initiative like in mount merapi by mr Sukiman (tobacco to vegetables) and Mr Yanto in Magelang (tobacco to vegetables and furits). There is no specific policy on this crop shifting.

EXPERIENCE FROM OTHER COUNTRIESGovernment Initiatives- Mexico, Brazil, Argentina, Jerman, Turki,

Lebanon, Uganda, Kenya, China, Malaysia

NGO Initiative- Chickpea boom : Sabra Dipping co.

(CEPAGRO) Brazil, ATCC-Tunisia, CTCA-Uganda, Kawalazi-Malawi, ADRA-Mawlawi, MOFA-Zimbabwe, CFCB-madagascar, MACT India, NTCP-India, BATA-Bangladesh.

OTHER COUNTRIES EXPERIENCE

Brazil: Diversification of Production and Income in Tobacco Growing AreasKenya: Tobacco to BambooBangladesh: No Tobacco, grow Food!

POLICY OPPORTUNITY1. Act no. 19 / 2013 on Farmers Protection and Empowerment

Goal : sovereignty and independence of farmers, agricultural infrastructure and facilities; certainty of farming; Protect from price fluctuations, high cost economy practices, and crop failure; Improve institutional capacity and farmers; institutional agricultural finance

2. Act no 39 / 2007 on Excise Tax

Article 66A :"The state revenues from tobacco excise distributed to tobacco-producing province of 2% (two percent) were used to fund the improvement of the quality of raw materials, industrial development, fostering a social environment, socialization provisions excise, and / or eradication of goods subject to excise illegal ”.