The Hindu Business Line : Tobacco auctions resume in AP

TOBACCO auctions resumed on Friday in Andhra Pradesh following an understanding reached between the trade and farmers late on Thursday night, after a two-day break.

The talks were conducted between the trade and farmers, with Mr K.J.B.V Subrahmanyam, Executive Director of the Tobacco Board, playing the role of a mediator.

It was agreed that the trade would participate more vigorously in the auctions and the offtake would be increased substantially to pave the way for the completion of the auction process on all the 21 floors by the end of June. The ITC-ILTD, as the major buyer, would shoulder greater responsibility and the rate of rejection would be reduced.

The Tobacco Board would monitor the purchases by different registered buyers and dealers and take suitable action against those not honouring the commitment. The board would serve notices on the defaulting companies.

Commenting on the agreement, Dr Sivaji, President of the AP Virginia Tobacco Growers' Association, said it was only ``ceasefire'' and the farmers would resort to agitation, if the trade did not honour the commitment.

He said the Chief Minister would visit Guntur on April 12, when the issue would be reviewed, and a decision would be taken then on the future course of action, depending on the response of the trade.

The Tobacco Board has directed the trade to buy at least 15-20 per cent of the tobacco immediately to bring buoyancy to the market.

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