Market will now determine tobacco prices

Crop was the last agricultural product whose procurement costs were government-regulated

China has announced that procurement prices for tobacco leaves will now be set by supply and demand, in a country where one-third of the world's cigarettes are consumed but where sales of high-end cigarettes have dropped during the recent corruption crackdown.

The National Development and Reform Commission and China Tobacco Co released a notice to relax procurement prices on more than 160 types of tobacco leaves, which had been the last agricultural product under pricing regulation in China.