The Hindu Business Line : Tobacco players pitch for higher productivity

CONFRONTED by anti-smoking campaigns and high taxation on tobacco products in the domestic market, the Indian tobacco industry has called for efforts to improve quality and productivity to significantly increase exports.

Several speakers representing farmers, traders, industry and scientific community, at the inaugural of a national conference on tobacco held here, said that the country needs to focus on producing quality tobacco to tap opportunities globally. Efforts should also be made to find more alternative usages of tobacco.

The four-day conference is being organised by the ISTS (Indian Society of Tobacco Science). Dr Raghuvardhan Reddy, Vice-Chancellor of Acharya N G Ranga Agricultural University (ANGRAU), said that the industry isgoing through difficult times. Awareness is growing on the health hazards of tobacco.

While monitoring norms relate to pesticide residues, the country should work towards reducing the cost of cultivation through mechanisation and energy conservation.

Dr J. Suresh Babu, Executive Director of Tobacco Board, said that some countries had been imposing non-tariff barriers in the post-WTO (World Trade Organisation) regime, causing imbalances in international trade. These measures hampered the interests of developing countries.

While increasing quality and productivity with low pesticide residues and low TSNA (tobacco specific nitrosamines) levels, the country should cut down production costs.

Tobacco and allied industries contribute around Rs 8,200 crore as excise revenues. Over 3.6 crore people depend on tobacco farming and allied sectors. Though India ranks as the third largest producer after China and Brazil, it accounts for just five per cent of global exports. "This can't be discarded," Dr Suresh Babu said.

Mr Y. Shivaji, an expert on tobacco issues, regretted that tobacco farmers are getting a raw deal when compared with their peers in other top tobacco-growing countries. They realise just 70 cents a kilogram, while their peers in the US get $4 and Brazil $2.

He wondered why tobacco was not included in the agricultural processing zones. Contract farming offers no level playing field, as small farmers can't match the big players. Mr D. K. Adikesavulu Naidu, MP from Chittoor, said that restrictions and bans would only benefit other countries in terms of exports.

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