RM2mil cash crop: Smallholders in Ranau thrive as Sabah's tobacco hub

The tobacco industry in Ranau, Sabah, generates nearly RM2 million annually from 44.5 hectares of farmland, according to Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad. The district is home to about 118 local growers who produce sliced and rolled tobacco, which is then sold to wholesalers across Sabah. Noraini emphasized that the sector's potential is vast, particularly if it focuses on quality products, modern cultivation techniques, and expanded market networks.

The minister's recent visit to a tobacco plantation in Kampung Lipasu Baharu aimed to highlight the industry's growth prospects and its positive impact on the local economy. She stressed the importance of collaboration between the Sabah government, federal agencies, and local communities to turn Ranau into a model of successful agricultural development based on commodities.

While tobacco cultivation, production, and marketing in Sabah fall under the state government's purview, the Ministry of Plantation and Commodities is willing to share technical knowledge, research, and development support to ensure the sector's sustainable growth. The Ministry of Plantation and Commodities and the National Kenaf and Tobacco Board (LKTN) oversee tobacco cultivation, production, marketing, and product regulation in Peninsular Malaysia under the National Kenaf and Tobacco Board Act 2009 (Act 692).

In 2021, Malaysia produced 78.32 tonnes of sliced tobacco, with an average price of RM20 per kilogramme, resulting in a production value of RM1.57 million. Tobacco and tobacco product exports from Malaysia reached RM150.4 million, with major markets in China, the United Arab Emirates, Thailand, India, Belize, Singapore, Vietnam, Indonesia, Australia, and Bangladesh.

Imports of tobacco and tobacco products, valued at RM427 million, came from Indonesia, the Philippines, Switzerland, Hong Kong, Singapore, Germany, South Korea, Cuba, Vietnam, and Belgium. Despite the industry's economic potential, the government has ceased providing assistance or incentives to tobacco growers as part of its commitment to the World Health Organisation Framework Convention on Tobacco Control (WHO-FCTC).

Nevertheless, relevant agencies continue to offer advisory services, regulate cultivation and products, and ensure compliance with the provisions of Act 692.