To improve things in the tobacco sector, the plantation area should be not less than 15 thousand hectares. Such a task was set to responsible officials by Prime Minister Vasile Tarlev at the Thursday's special working meeting he convened to discuss situation in the sector.

Last year, the plantation area was only 5.4 thousand hectares, against 9.1 thousand ha in 2002. As a result, the gross production of green tobacco leaf shrank to only 60 thousand tons (almost 1.5 times inferior to 2002 results), and Moldovan tobacco-fermentation and cigarette factories were engaged by only av. 61 percent of their technical capacity.

Mr. Mihai Machidon, Director General of the Moldova-Tutun agri-industrial department, indicated several essential reasons of the tough situation in the sector: lack of raw materials, enterprises' debts, shortage of circulating capitals with both farms and fermentation factories, high wear and tear of equipment, and lack of means that prevents re-equipment.

In order to improve the situation, the sector's flagship - Chisinau cigarette factory Tutun-CTC - will increase the volume of investment in crediting of tobacco farms. Recently, a bill was prepared on pardoning fines and penalties imposed on farms' historic debts. The bill will be considered at the Government's next ordinary meeting.

According to the Prime Minister's instruction, an action plan shall be worked out by April 20 to foster the development of those fermentation factories that are majority-owned by the State. During April, relevant officials shall prepare a plan for rehabilitation of the National Scientific-Research Tobacco Institute, and to work out a regulatory framework for establishing a Fund for Tobacco Sector Support.

Before independence, the tiny Moldova used to be the Soviet Union's biggest tobacco producer, with the plantation area being around 65 thousand hectares and annual dry leaf yields about 80 thousand tons.