Tehran, Iran, Feb. April 4
By Milad Fashtami - Trend:
Iranian Tobacco Company sold 7.05 trillion rials ($235 million based on the exchange rate of USD at the free market) worth of products in the previous Iranian calendar year (which ended on March 20), Iran's ISNA News Agency reported on April 4.
The figure is 32 percent more than the preceding year.
The company produced 19 billion cigarettes in the previous year, which shows a 15-percent increase compared to the preceding year.
The company's managing director, Masoum Najafian, said in December that Iranian Tobacco Company will introduce new cigarette brands to the market.
"Not producing cigarettes in the country is not a good solution to lower the consumption rate," he said, adding that it will just lead to the unemployment of 70,000 people.
"Iranian Tobacco Company plans to export cigarettes," he said, noting that the company will supply domestic markets as well.
He further said that cigarette smuggling will definitely harm Iran's economy.
The Fars News Agency reported in September that smuggled cigarettes cost much cheaper than domestic products in Iran's market.
The high price of Iranian-made cigarettes in comparison to the price of smuggled foreign brands has become a tough challenge for Iranian Tobacco Company.
Iranian dealers are having a hard time selling domestically-made cigarettes in the market.
Delays in issuing holograms for imported cigarettes have also encouraged smugglers to trade more and more cigarettes illegally.
The average price of a pack of smuggled cigarettes is around 80,000 rials ($2.5 based on the rate of USD at the free market), while Iran Tobacco Company's average price stands at 130,000 rials ($4.1) per pack.
Edited by S.I.