Financial Daily from THE HINDU group of publications
Saturday, Apr 20, 2002

Port Info

Group Sites

Agri-Biz & Commodities - Tobacco

Tobacco price stabilisation fund plan draws flak

Our Bureau

On the proposed price stabilisation fund, there was a prolonged heated debate without any conclusion.

GUNTUR, April 19

THE need to set up of a price stabilisation fund to ensure a remunerative price to the tobacco farmers was stressed by the Andhra Pradesh Agriculture Minister, Mr V. Sobhanadreeswara Rao, at a Tobacco Board meeting here on Wednesday.

The State Agriculture Minister, who convened the meeting at the behest of the Chief Minister to discuss the crisis in the AP market, said it was the responsibility of the trade to pick up the tobacco grown in the State as the farmers had not exceeded the authorised crop size.

He said the board should act against the defaulting traders and the excuse offered by the trade, that there were no export orders, was not tenable.

Dr P. Dayachari, Tobacco Board Chairman, said till now only 23 million kg of crop had been sold on the 21 floors in the State at an average price of Rs 41 a kg and at present roughly 6,000 bales or so were being sold on the floors every day.

``At least, 10,000 bales or more should be sold every day to conclude the auction process by June 30, as promised by the trade at an earlier meeting,'' he said.

On the proposed price stabilisation fund, there was a prolonged heated debate without any conclusion.

The Minister said the Chief Minister had written to the Centre to expedite the process and to treat the punitive cess collected from the farmers (Rs 21 crore or so) as their equity contribution.

``We have learnt that the National Council for Applied Economic Research, to which the matter had been referred, had recommended the creation of a special purpose vehicle (SPV) for the purpose, with equity contributions from the farmers, the trade and the Tobacco Board,'' he said.

Send this article to Friends by E-Mail

Stories in this Section
Fishworkers seek separate Ministry

Kerala firm to export 500 tonne latex to Germany
Sheet rubber dull on resistance
Balrampur getting ready for branded sugar foray
Need to educate farmers on GM crops stressed
Pressure to hike butter oil duty
Mahyco to offer free non-Bt cotton seeds
No cotton deals
Exporters active at coffee auction
`Crop holiday has helped Karnataka and traders' -- Tobacco growers in AP restive
Tobacco price stabilisation fund plan draws flak
Pepper up on tight supply, hectic buying
Kerala unlikely to get agri export zone

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line