Business Daily from THE HINDU group of publications
Tuesday, Apr 24, 2007
ePaper


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Agri-Biz & Commodities - Tobacco
`Tobacco growers not deterred by penalties'

Mohan Padmanabhan

2 panels set up for welfare expenditure


Dr Suresh Babu

Recently in Guntur

The Tobacco Board has dismissed the oft-repeated charge by growers, especially in Andhra Pradesh, that the board is not spending enough on farmers' welfare despite being flushed with funds, as "motivated allegations".

Dwelling on various issues pertaining to growers and traders/manufacturers in the context of the auction system and other regulatory aspects governing the tobacco crop, Dr Suresh Babu, Chairman of Tobacco Board, told Business Line that the stipulated crop size was being far exceeded by the Andhra Pradesh farmers, even beyond the normal allowance of 10 per cent.

Against a size of 150 million kg (mkg) for the 2006-07 season, for which the auctions are now going on, the yield has cited at around 170 mkg. "Hence, much against our wishes, we are constrained to collect a penalty of 15 per cent on the average value of the excess crop."

He also cited the problem of unauthorised growers in Andhra Pradesh, numbering nearly 2,000. Every tobacco grower has to be registered with the board, for which he has to pay a fee.

Dr Babu said: "We expected the penalty to act as a deterrent, but strangely it has not worked so far". In the case of Karnataka farmers, against a stipulated crop size of 92 mkg for 2006-07, the produce has been around 97 million kg, some 80 per cent of which is exported out as high quality neutral filler tobacco much sought after by international merchants.

He said: "We want to spend the money collected as penalty on farmers' welfare, and have constituted two special committees (one each in Andhra Pradesh and Karnataka) to study the various suggestions received from the growers on the welfare front as well as improvement in auction systems."

He pointed out that some of the suggestions such as an insurance cover for tobacco curing barns, to save the farmer from a bad day, were under consideration. In this case, the premium will be paid by the board.

Energy conservation

Calling for energy conservation in the curing process, he said: "We are also thinking of introducing a stitching machine (like in Brazilian tobacco barns) for holding the leaves in a proper suspended position to allow more uniform curing, which can raise the per barn yield substantially."

He said the board was already in dialogue with a Hyderabad-based engineering company to develop these machines, based on the Brazilian prototype.

The Chairman said the process of regularising unauthorised barns in both Karnataka and Andhra Pradesh was a continuing process. Stressing on extension activities, he said the board was also working with both CTRI and ITC-ILTD R&D teams to evolve alternatives to firewood such as briquettes made from the farm waste including tobacco stalk and mixed with Bodha grass. In Karnataka, briquetting has been successfully done through coffee husk.

According to senior CTRI scientists working on the pilot project, the private sector can be involved to set up these briquetting units, which will collect the waste from the farmer and convert them into briquettes for firing the barns. The board, it is suggested, can subsidise the farmer who has to pay for this alternative to firewood.

More Stories on : Tobacco

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Centre pins hopes on UP for buffer wheat stocks


The man behind the Centre's wheat woes
Staging a comeback
Alphonso output down by 50%
Rubber exporters' meet on Thursday
Spot rubber prices unchanged
Shree Renuka net down at Rs 23 cr
Brazil to join global cashew alliance on April 26
`Tobacco growers not deterred by penalties'
Pepper futures soar on surge in Vietnam prices
Supply source


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

Copyright © 2007, 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