TTM recognizes that there is an over-supply of leaf tobacco in Thailand. Stocks are running at year and half levels, when optimum levels are normally only about six months. And for 1999, leaf stock levels are projected to increase by nearly 18 percent. To address this problem, TTM will cut the tobacco quota levels in the coming years. All flue-cured production is centered in the High Northern Provinces.
Production is divided into early, middle, and late season crops.
The early crop, which is planted on hilly or inclined lands in August and September, is preferred by both the domestic user and exporters due to its thin body and aroma. However, the early crop production is limited by its higher production costs and higher production risks. The middle and late crops are seeded in October and November and harvested in December and January, respectively, when weather conditions are better. Flue-cured production is estimated at 23,000 metric tons, down about 8 percent in 1999. Unfavorable weather is the reason for the 8- percent reduction.