Tobacco and Its Related Products

  Department of Marketing[pic 1]

       Islamic University- Kushtia, Bangladesh.

An Assignment on

             Poultry and Egg Marketing in Bangladesh

                        Course Name: Agricultural Produce Marketing

                        Course code: MKT- 315

Prepared For:

Md. Mazedul Haque

Lecturer-Dept. of Marketing

Islamic University- Kushtia, Bangladesh

     Name of the group Members

                     Prepared By:  

                  Group No: 3

                       Department of Marketing

                       Islamic University- Kushtia.

               Date of Submission: 31 March 2018.

• Definition of Tobacco:

Tobacco is dried leaves which people smoke in pipes, cigars and cigarettes.   You can also refer to pipes, cigars and cigarettes as a whole tobacco.

• Production of Tobacco:

The production land of tobacco is increasing day by day. As a result we are going to shortage of our food grain farmland.

Total cultivable land and tobacco cultivable land in BD ….

1) Total cultivable land------ 85,20,000 hectors

2) Losing per year-------------69,000 hectors

Using for tobacco cultivation -------70,000 hectors ( in 2013)

                                                    -------1,08,000 hectors ( in 2014)

           Tobacco cultivation hotspots

1. Kushtia -----37% (Golden village is called 26 village of kushtia)
2. Nilphamari and Lalmonirhat ------ 28%
3. Bandarban----- 26%
4. Rangpur -------- 9%

• Consumption of tobacco

Tobacco use is a major public health problem in BD having dual burden of high production and consumption. According to global adult tobacco survey (GATS) reports show that 43.3% people uses tobacco either in smoking or smokeless form and 23% of population smokes biri, cigarette, hookah etc. 27.2% people use smokeless tobacco like Zarda, Sadapata, Gul, Nossi etc.

So we are analyzing that the consumption rate of tobacco is very high.

• Demand and Supply of Tobacco

Bangladesh one of the largest tobacco consuming countries in the world. Over 58% of men and 29% of woman use some form of tobacco whether smoke or smokeless. Some upper level people in the country they take tobacco as a fashion also local people also take tobacco and the demand of tobacco increasing day by day.

Supply of tobacco: Supply of tobacco is not available in our country. In 2003 the export of tobacco were increase rapidly because of 10% incentives on exports provided by the govt. as a part of and export diversification program. But in the budget 2016-17 the govt. imposed 10% duty on tobacco leaf exports in an effect to discourage tobacco growing.

• Product: 1) pricing 2) packing 3) Distribution 4) promotion 5) labeling 6) Branding.

Pricing of Tobacco:

Finance Minister AMA Muhith in the budget for 2016-17 fiscal year on Thursday (June 2) proposed to increase the price of all tobacco products including biri and cigarettes.

The lowest slab of cigarette price has been set at Tk. 23 which was Tk. 18 last year, he said.

The supplementary tariff also increased from 48 percent to 50 percent and other two stages tax increased from 61 percent to 63 percent and 62 percent to 64 percent.

The minister said the bad effect of biri is much more that cigarette and its market price is less, Tk. 7.06 for 25 sticks without filter and Tk. 7.98 for 20 sticks with filter.

He proposed to increase the price of biri without filter to Tk. 10 and with filter Tk. 12.

The supplementary tax of two other tobacco products ‘Jarda’ and ‘Gul’ has been increased 100 percent from 60 percent, the minister added.

The government has proposed to impose a surcharge of 2.5% on incomes from tobacco products including cigarettes, biri, zarda and gul..

Finance Minister AMA Muhith said this on Thursday, when delivering his budget speech for the fiscal year 2017-18.

Therefore, high rates of duties are imposed on tobacco and tobacco production, and this year the government will impose 25% export duty on these items with a view to discouraging their production and consumption.

Given the market competition, Muhith proposed to increase the price for every 10 sticks of low-segment cigarettes to Tk27 from Tk23 and the supplementary duty rate to 52% from 50%.

He also proposed to set the price for every 10 sticks of foreign branded cigarettes at Tk35 and the supplementary duty rate at 55%.

The existing supplementary duty rates for non-filter bidi and filter bidi will remain unchanged at 30% and 35% respectively. He proposed to fix the tax inclusive price of 25 sticks of non-filter bidi at Tk15 and 20 sticks of filter bidi at Tk15.