Iran has 39 tobacco and 23 cigarette production companies.
The number of cigarette manufacturers in Iran increased from seven companies with an annual output of 29 billion cigarettes in the year ending March 2015 to 23 companies with an annual output of 55 billion in the year ending March 2020.
According to a report by the Persian economic daily Donya-e-Eqtesad, citing statistics by Industries Ministry, two leading international manufacturers of cigarettes, namely British American Tobacco and Japan Tobacco International accounted for more than 60% of total cigarette production in Iran last year (March 2019-20).
The report puts the total turnover of tobacco industry in Iran at 300 trillion rials ($1 billion) last year.
Decline in Iran’s Oldest Tobacco Company’s Production
Misguided policies regarding the tobacco industry, restrictive regulations and lack of thoughtful planning have reduced the output of Iranian Tobacco Company in recent years, says a member of the board of directors of the company.
“ITC’s production last year [March 2019-20] reached around six billion cigarettes compared with nine billion in the year ending March 2019 and 12 billion in the year ending March 2018,” Payam Hamedani-Mojarrad was also quoted as saying by ISNA.
The oldest Iranian tobacco company has 81 production lines and is capable of producing 40 billion cigarettes annually to meet 50% of market demand. However, according to the official, the government has yet to decide whether it is willing to improve its presence in tobacco industry—one of the top five high-yielding industries in the world.
“ITC purchases tobacco from 15,000 farmers and