Kathmandu. Chinese investors have proposed to open a tobacco industry with 100 percent export. A proposal has been made to open an industry with foreign investment in the Department of Industry.
Huaweia Tobago Company Limited has sought permission from Tobago Company limited to export raw materials. It has proposed to invest Rs 2.49 billion in the industry. There will be full foreign investment in the industry.
The industry aims to produce 60 million cigarettes annually. The industry is preparing to sign an agreement for raw materials in all seven provinces. “We want to make a good investment in Nepal, which will also contribute well to Nepal’s economy,” said an industry investor. We are preparing to sign an agreement with the farmers of all the seven provinces for the production of raw materials. Through this, farmers will easily get the price of their produce and market. ”
According to the investors, the company is planning to sell even a single piece of tobacco and cigarettes produced in the Nepali market. The investor added, “We have not looked at the Nepali cigarette market, our goal is to export raw materials and cigarettes of tobacco products to the Chinese market, not a single cigarette will be sold in the Nepali market.” ”
The Ministry of Industry, Commerce and Supplies has also agreed to grant tobago license on the condition of exporting 100 percent. The Industrial Business Act has included tobacco industries in the industry that require permission. If this industry is to get permission, then the proposal of the Department of Industry will have to get approval from the Industrial Investment Promotion Board.
However, investors are worried about the long-standing halt in the industry. The investor added, “The work done by the Chinese government office in one hour in Nepal has not been completed for more than six months. ”
Nepal needs to establish a high-tech cigarette industry to compete in the global cigarette market. The global cigarette market is over $850 billion in 2023, showing moderate growth despite regulatory challenges.
Developing countries continue to promote cigarette consumption. China is the largest consumer of the cigarette market, while India is also a large market. These two countries are neighboring countries of Nepal. In addition, Japan is the largest importer of cigarettes. Similarly, European countries such as Germany, Italy, and France also import large quantities.
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