The Hindu Business Line : AP tobacco farmers plan stir against low prices

TOBACCO farmers in Andhra Pradesh are planning to stop traffic in front of the auction floors on Tuesday in protest against the low prices for the crop, according to Dr Y. Sivaji, President of the AP Tobacco Growers' Association.

He said on Monday that, till now, a little over 50 million kg of tobacco had been sold on the auction floors in the State and "on the whole, for all grades of tobacco, there has been a slump of Rs 2 per kg in comparison with last year's prices."

Currently, the average price is Rs 38 a kg against rs 40 during the same period last year.

Against the authorised crop of 111 million kg, the farmers in the State have produced 140-150 million kg of tobacco. According to the trade circles, the huge surplus is the key factor resulting in the low prices.

Dr Sivaji, however, dismissed the contention of the trade stating that the same traders had picked up Karnataka crop at higher prices, even though there had been a huge surplus in that State too, with the actual production touching the 90-million mark.

"Of course, there has been a huge surplus in both States. The tobacco grown in the northern light soils and the southern light soils of Andhra Pradesh bears comparison with the Karnataka crop. There has been a slump in prices on these floors too. The bias of the trade therefore is very evident," he said.

Dr Sivaji said, "The farmers in Andhra Pradesh are unable to reconcile themselves to this reality. In recent times, there has been a huge jump in tobacco production in Karnataka with the regularisation of a large number of unauthorised barns and the failure of the Tobacco Board to exercise any sort of control over production in that State."

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