The Hindu Business Line : Tobacco Board to launch pilot project on alternative crop

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This is part of a long-term planning process initiated by the board and the Central Tobacco Research Institute
The board is now in the process of creating a report for consideration of the Government.

Mohan Padmanabhan

Rajahmundry, June 23

With health-conscious markets shunning tobacco and the need for alternative value-added cash crop gaining momentum, it is now in the hands of farmers to choose. It is generally felt the farmer, who is the ‘best scientist for his land’, should have the maximum say on selection of an alternative crop.

Talking to Business Line on Monday on the sidelines of the TII (Tobacco Institute of India) Awards for Karnataka, Andhra Pradesh Tobacco Farmers function for 2008, Dr Suresh Babu, Chairman of Tobacco Board, said the board would soon be launching a pilot project for 1,050 tobacco farmers of Bhadrachalam area (in Khammam district), who have volunteered to completely opt out of tobacco if an alternative can be cited.

He said this was part of a long-term planning process initiated by the board in close collaboration with the Central Tobacco Research Institute, Rajahmundry, which is already engaged in research on an alternative cash crop.

Dr Babu said following a meeting with Mr Jairam Ramesh, Union Minister of State for Commerce and Power, and other Commerce and Health Ministry officials in Delhi some time ago, the Tobacco Board was now in the process of creating a report for consideration of the Government.

Auction prices

Asked to comment on the 100 per cent jump in average price for the Andhra tobacco crop at the on-going auctions (from Rs 47 a kg last year to over Rs 84 a kg this year), with the highest touching a record Rs 142), Dr Babu attributed this more to the unshackling of trade enforced prices on the farmers. Interestingly, both the industry and trade cite the substantial drop in the global tobacco production, particularly in countries such as Brazil and Zimbabwe.

Spurt in prices

Presenting a contrarian view, Dr Babu said once the resistance level was breached, the floodgates have been thrown open. While admitting that production was indeed low, he felt that sudden spurt in demand alone was not responsible for the galloping prices, which have made the AP tobacco farmers reap a windfall.

A tobacco farmer told Business Line that his income this year has already jumped to over Rs 1 crore (on a sale of tobacco of 1.16 lakh kg) from around Rs 43 lakh (same 1.16 lakh kg) in 2007. He put his investment at around Rs 55 lakh. And this has been achieved at a time when prices of all inputs, particularly fertiliser, have skyrocketed.

Summing up the good times for the AP tobacco farmer, Dr Babu said, “While prices have shot up, penalties (for exceeding the stipulated crop size) have come down.” Responding to pleas from the farming community, the Board, from this year, has reduced the penalty from 15 per cent (of value of excess crop) to five per cent, with the additional levy of Rs 2 a kg brought down to Re 1.

Ministry’s campaign

Earlier, in his welcome address, Mr Udayan Lal, Director, TII, said there was concern over the Health Ministry’s proposal to reduce tobacco production by encouraging cultivation of alternative crops. Cautioning that the process has to be taken up in a planned and systematic manner, he said the idea was fraught with “dangerous repercussions” that could endanger the livelihood of lakhs of farmers, farm workers and their families.

He felt comprehensive research, covering the different agro-climatic zones, would be required to identify the substitute crops. He suggested a phased introduction, after field trials and exhaustive farmer training,