The Tobacco market in Andhra Pradesh is in a crisis as there are no takers for the low grades and prices are plummeting on the auction floors for such grades. Two suicides have been reported from Prakasam district and Chief Minister N Chandra Babu Naidu has urged farmers not to lose heart and assured them that steps will be taken to address the problem. The authorised crop for the State is 172 million kg for 2014-15 and so far 141 mkg of tobacco has been sold on the floors at an average price of ₹103.64 a kg.

Problems of plenty Still, 30 mkg more of authorised crop is yet to be sold, and to make matters worse there is a surplus of at least 20 mkg. In all, 50 mkg of tobacco is lying with farmers, much of it low grade. The auctions have been sluggish from the start of the year and now in the concluding phase, the going has become very difficult.

There are no takers for the low grades and low prices are being offered, making it unremunerative for the farmers.

The problem is especially acute in Prakasam and Nellore districts in the southern light soils and southern black soils. The best tobacco in the State is produced in West Godavari in the northern light soils (NLS).

Bright grades So far, 50 mkg of tobacco has been sold in the NLS area in West Godavari district and there may be 15 mkg more left with farmers in the district including 3 mkg of surplus. The problem has not affected the region as bright grades are more prominent. Quality of the crop has dipped in Prakasam and Nellore districts and prices realised on the floors are very low. The farmers want at least ₹65 a kg for such tobacco.

They also want the Tobacco Board to take steps to reactivate the market and want no punitive cess imposed on the unauthorised crop as it would accentuate the problems of farmers.

sarma.rs@thehindu.co.in

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