Tobacco growers and curers need incentive scheme to cover losses

PASIR PUTEH Oct 1 - National Economic Action Council (NEAC) Executive Director Datuk Mustapa Mohamed has urged the Primary Industries Ministry to consider the appeal by tobacco growers and curers for an incentive scheme to cover losses of over RM170 million over the past four years.

He said a relief of RM4 for every kilogramme of cured tobacco leaves in the form cash or subsidy would help them to settle some RM50 million in bank loans.

"The ministry should consider their appeal since they have been incurring losses over the past four years, totalling over RM171 million," he told reporters after officiating a meeting with some 2,000 tobacco growers in Semerak here Tuesday.

Mustapa said the losses were due to flash floods which had inundated their crops.

The country's tobacco industry provides income to some 500,000 people nationwide.

National Tobacco Board chairman Mohd Zain Ismail in his speech said he would go to the ministry next week to submit the appeal.