OREANDA-NEWS. August 3, 2011. Japan Tobacco Inc. (JT) (TSE: 2914) stated that the Leaf Tobacco Deliberative Council, chaired by Yoshio Kobayashi, announced its determination to solicit Japanese leaf tobacco growers who volunteer to cease cultivation when surveying individual growers' requests for cultivation in preparation for the 2012 leaf tobacco contracts. This was in response to a proposal submitted by JT earlier in the day. The council's determination was aligned with JT's proposal.

The total sales volume of the Japanese domestic tobacco business decreased by nearly 20 percent following the price hike due to an unprecedented excise tax increase in October 2010. This took place amid declining demand in recent years due to the aging of society, growing awareness of the health risks associated with smoking, and tightening of smoking-related regulations.

In light of these circumstances, JT has made the proposal to solicit growers who volunteer to cease cultivation, with the aim to foster lead growers, build the foundation for the growers who will assume future domestic leaf tobacco cultivation without anxiety, and secure a stable supply-demand balance.

JT will summarize each grower's intent regarding cultivation upon consultation and in cooperation with the growers' unions in accordance with this determination. Based on the survey results, JT will then submit its proposal on cultivation areas and prices for 2012 leaf tobacco to the next Leaf Tobacco Deliberative Council scheduled for autumn.