Generally, the number of farmers employed in tobacco cultivation
in ASEAN countries is small compared to overall national
employment, contributing less than 1% of total employment in all
the producing countries. Tobacco cultivation is highly
labor-intensive and employs entire households (including unpaid
women and children) in many stages of planting, harvesting,
curing, and marketing.
Most tobacco farmers are smallholders, cultivating only part of a
hectare, and do not turn a profit due to major input costs (rental
fees to landowners, costs of seedlings, fertilizers, insecticides,
and wood fuel for curing) and low leaf prices as determined by
tobacco companies. Other challenges in the cultivation of tobacco
leaf include Green Tobacco Sickness (GTS) and other health hazards
for farmers, environmental degradation, unpaid labor, and child
labor.
All ASEAN countries are implementing a TAPS ban, but most are
partial bans, with Indonesia having the weakest TAPS restrictions
in the region.
In addition to a ban on direct tobacco advertising in most ASEAN
countries, Brunei, Lao PDR, Singapore, and Thailand (and 21
cities/districts in Indonesia) also ban the display of tobacco
packs at POS to reduce the visibility of tobacco products. Three
countries (Brunei, Singapore, and Thailand) also require licenses
for tobacco retailers to facilitate regulatory compliance.
Only four ASEAN countries (Lao PDR, Malaysia, Myanmar, and
Thailand) currently ban CSR activities by the tobacco industry,
while only the publicity of tobacco industry CSR is prohibited in
Cambodia, Indonesia, Singapore, and Vietnam.
As this chapter illustrates, more still needs to be done to
achieve a comprehensive TAPS ban across the ASEAN region, noting
that the industry will continue to find innovative ways and
constantly evolve its marketing tactics to promote and market its
products, such as through creative package designs, new product
flavors, new media, and cross-border advertising.
Tobacco industry profit in global market (2017 – 2023)
*Since 2013, the Malaysia government disengaged from supporting and promoting tobacco and now solely implements policies to regulate the tobacco industry. However, there is small-scale farming for sliced tobacco for the local market only.
Malaysia: Sustainable way out - Kenaf alternative crop
In 2000, Kenaf (Hibiscus Cannabinus L) was recognized in Malaysia as
a new short-term industrial crop supporting the diversification of
the country’s commodities sector. It has high potential for
cultivation in a tropical climate and was promoted by the government
as an alternative crop for tobacco in 2004.
About MYR 5.8 million (USD 1.53 million) was allocated for kenaf
research and development (R&D) to attract industrial players to
invest in kenaf between 1996 and 2005. Under the 11th Malaysia Plan
(2016 - 2020) implementation of programmes and projects, the
government allocated MYR 5 million (USD 1.21 million) to strengthen
kenaf R&D and MYR 58.99 million (USD 14.23 million) for a new kenaf
planting programme.
Small-scale tobacco farmers are encouraged to switch to alternative
livelihood through a crop diversification programme, which started
in 2005 and has intensified over the years with financial support
from the government. Incentives in terms of inputs and mechanization
are given to kenaf's growers.
In 2023, the kenaf cultivation involves 1,399 hectares with a total
of 757 kenaf growers.
Cambodia: Tobacco farmers switched to other crops
Some tobacco farmers realized that tobacco farming is less profitable compared to other crops. About 40% (240) of tobacco farmers have switched from tobacco farming to alternative crops in the last ten years. This is due to:
- Lower profit compared to other crops
- Tobacco farming needs more capital
- Price fluctuation of tobacco
The alternative crops include rice, corn, peanut, other industrial crops, such as soy bean and sesame, as well as other vegetables.
Indonesia: Profitability of farming other crops vs tobacco
- Ex-tobacco farmers’ yearly income significantly increased by 69% after they shifted to other crops.
- Three in four (71%) ex-tobacco farmers shifted to grains followed by vegetables (21.5%), fruits and others crops, which are more profitable than tobacco.
Former tobacco farmers average total monthly income (IDR 2,500,000 –
USD 184.5) were three times higher than current tobacco farmers total
monthly incomes (IDR 775,000 – USD 57.2).
Many former tobacco farmers are making a better living growing other
common, locally grown crops (e.g., corn, sweet potato, and green
vegetables), an outcome that could be further enhanced with even small
investments by governments in improved supply chains for these
products.
Alternative crops to tobacco
Philippines: Profitability of farming other crops vs tobacco, 2009
- Farmers in Ilocos Norte, Ilocos Sur, La Union, and Pangasinan (Region 1) preferred to plant non-tobacco crops since they require less input and labor compared to tobacco.
- Vegetable crops such as tomato, garlic, eggplant, pepper (sweet/hot) and bitter gourd provided much higher income than tobacco.
- Cultivation of mungbean and peanuts also resulted in higher income compared to tobacco.
For more detailed information, please refer to Child Labour in Tobacco Cultivation in ASEAN Region (2018).
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