Tobacco Board pares crop size by 5% in AP

The Tobacco Board has reduced the crop size by 5 per cent to 162 million kg (170 mkg) for Andhra Pradesh for 2011-12.

While cutting the crop size, it has set its eyes on promoting alternative crops.

The reduction has been put into effect based on the recommendations of Committee for Production and Production Control.

The crop size also include tobacco areas in Maharashtra and Orissa.

The decision came on the heels of glut in the international market and subsequent reduction in appetite in the domestic tobacco industry.

The industry had told the Board that it could not absorb more than 120 mkg. The board, however, persuaded them to increase it to 140 mkg.

Alternatives

The Board will hold a national level meet on September 19 and 20 at Rajahmundry to discuss viable alternatives that farmers could consider to shift from tobacco.

“We have held a similar meeting last week in Mysore. The meeting will draw experts from across the country. It will suggest a roadmap for tobacco farmers. We will go for region-wise alternatives depending on soils,” Mr G Kamala Vardhana Rao, Chairman of Tobacco Board, told Business Line after the 132{+n}{+d} board meeting held here on Friday.

The board also set up a special committee to look into the farmers' demand to compensate them when they surrendered licences.

About 1,200 farmers had represented to the board recently asking it to allow them to surrender their licences and compensate them for doing so.

Compensation

“The committee will discuss the issue comprehensively and suggest ways how to compensate. We expect their recommendations in a month,” the Chairman said.

"Several farmers have told me that they are willing to switch to other crops. We need to give them incentives to do so," Mr M Venkaiah Naidu, the BJP leader, told Business Line .

"We should at least give Rs 5 lakh per barn keeping in mind their probable loss of livelihood when stop growing tobacco," he said.

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