Japan Tobacco Inc. (JT) has announced that the Leaf Tobacco Deliberative Council released its report on the consultation for domestic tobacco cultivation area and purchase prices for 2022, in response to a proposal submitted by JT.

The Council responded that in 2022, the domestic tobacco cultivation area will be set at 3,889 hectares, a decrease of 34 per cent compared to the cultivation area of the previous year. The leaf tobacco purchase price will remain unchanged from last year at an average of JPY 1,924.15 (USD 17) per kg for all leaf types.
In addition, as a result of the cultivation area adjustment announced in the release, "Leaf Tobacco Deliberative Council agrees to JT’s proposal to reduce the total tobacco cultivation area in Japan" (dated 29 July 2021), 1,729 Japanese leaf tobacco growers indicated their intention to cease tobacco cultivation, resulting in a reduction of the total area of tobacco cultivation to 1,822 hectares.
JT will abide by the Council’s report and will proceed with the sales and purchase agreements for leaf tobacco in 2022, JT said in a press release. JT has already factored in the impact of this matter on the JT Group’s consolidated business performance for the fiscal year ending 31 December into the 2021 forecast announced on 29 October 2021.