Tobacco in Papua New Guinea: Imported Leaf and Local Practices

Asia stands as one of the oldest and most diverse tobacco-producing regions in the world. From China’s vast state-run plantations to Indonesia’s rich legacy of hand-rolled kreteks, and from India’s sun-dried leaf to Turkey’s world-famous Oriental varieties, the continent’s influence on the global tobacco trade runs deep and wide.

This new Cigar Inspector series explores the key tobacco-growing nations of China, India, Indonesia, Papua New Guinea, the Philippines, Thailand, Turkey, and Vietnam, tracing how geography, culture, and craftsmanship shape their distinct tobacco identities.

Each article will examine the evolution of these industries — from traditional curing barns to modern mechanised operations — highlighting the balance between heritage and innovation. Readers will gain insight into the unique leaf characteristics, production systems, and market dynamics that make Asia an essential, if often underappreciated, pillar of the global tobacco landscape.

Tobacco in Papua New Guinea: Imported Leaf and Local Practices

Papua New Guinea does not produce commercial tobacco leaf. All manufactured cigarette leaf is imported.

Small-scale subsistence farming persists in rural highlands, but the market is dominated by imports and strict regulations.

Overview & Historical Context

Tobacco arrived in New Guinea before 1600, brought by Moluccan traders.

By the 19th century, it became a trade item between tribes in the Trans-Fly region and interior highlands.

Commercial cultivation began in 1891 under the German Astrolabe Company with plantations at Stephansort, Erima, Jomba, and Maraga.

By 1893, these plantations exported over 108,000 pounds of leaf to Europe.

Formal production revived in the 1960s under British American Tobacco PNG.

Price disputes and market inefficiencies caused village flue-cured production to collapse by the late 1970s.

Today, formal domestic leaf production is non-existent. All cigarette leaf comes from overseas suppliers.

Key Tobacco Growing Regions

Subsistence-scale tobacco cultivation continues in rural communities.

The Eastern Highlands, including Goroka, Asaro, and Bena Bena, remains the main area for smallholder production.

Other highland districts and the Trans-Fly region also grow tobacco for local use.

This leaf is valued locally for its strong flavour, despite rudimentary curing methods.

Village farmers typically dry their leaf using crude farm kilns, producing a product known as “brus” for market sale.

Main Tobacco Types & Characteristics

Local cultivation focuses on flue-cured Virginia and native Nicotiana species.

Curing with crude farm kilns results in a robust, intense flavour.

There is no commercial cultivation of Burley, Oriental, or cigar-grade tobacco.

All imported leaf meets industrial standards for cigarette manufacturing.

Production System & Regulation

Papua New Guinea has no formal domestic production chain for cigarette leaf.

Rural growers operate informally, without licensing or oversight.

Regulation is split between:

• Department of Agriculture and Livestock (DAL) – manages agricultural policy
• National Department of Health – enforces the Tobacco Products (Health Control) Act 1987

The Act is being updated to comply with the WHO Framework Convention on Tobacco Control (FCTC).

Papua New Guinea ratified the FCTC on May 25, 2006, entering into force on August 23, 2006.

British American Tobacco PNG Ltd. holds a monopoly on cigarette manufacturing and distribution.

The company employs around 700 local workers and operates under licensing from DAL and Customs.

Annual government revenue from tobacco excise and import duties exceeds K 30 million.

Cigar-Specific Relevance

Papua New Guinea produces no wrapper, binder, or filler suitable for premium cigars.

No commercial cigar factories exist.

Cigar-related activity is limited to small-scale hand-rolled village cigarettes, which differ from premium products.

All premium cigars in the country rely entirely on imported leaf from established regions abroad.

Challenges & Future Outlook

Commercial tobacco leaf production is unlikely to return. Historical price disputes and lack of economies of scale are major barriers.

Subsistence curing methods remain energy-inefficient and unregulated, limiting quality and market access.

FCTC-driven controls and rising excise taxes may suppress domestic demand further.

No formal crop-substitution or farmer-support programs exist, restricting future opportunities for rural growers.

Papua New Guinea remains a unique market: heavily import-dependent, with a small informal production sector shaping local practices.

Fast Facts Table