Prolonged tobacco auctions in both Andhra Pradesh and Karnataka are resulting in heavy losses to farmers and they are unable to get a fair price for the produce, especially in Andhra Pradesh, and only the trade is benefitting at the expense of the farmer, according to Dr Y. Sivaji, the former member of the Rajya Sabha and an expert in the field.

He said in an interview that it had become a trend in recent years to extend tobacco auctions almost throughout the year and no attempt was being made to expedite the auctions. Presently, auctions are in the last phase in Karnataka and they are proceeding at a sluggish pace in Andhra Pradesh. Only a little over 20 million kg of tobacco has been auctioned on the floors in Andhra Pradesh and there is still 150 million kg or so to be sold in the State.

Dr Sivaji said that this season the Karnataka auctions had gone on for too long. “The trade is presently engaged in buying the surplus, unauthorised crop in Karnataka, while there are no takers for the authorised crop on the AP floors. The trade is exploiting the situation, and the Tobacco Board is doing nothing to rectify the anomaly. I feel the auctions in Karnataka should have been suspended after the trade had bought the authorised crop in that State and then the AP auctions should have been completed. Only after that, the trade should be allowed to buy the excess crop in Karnataka. The present situation is tailor-made for the trade to exploit farmers in both States,” he alleged.

He said that as summer advances tobacco suffers weight loss and with the onset of monsoon the leaf quality may also be affected. “At the field level, there are no proper storage facilities. It is for the trader to buy up the crop, at least the authorised quantity, as quickly as possible, grade it and store it in the warehouses. The export orders come later. At present, the trader is carrying no inventory costs. They are picking up the crop from the auction floor as and when they require,” he said.

He urged the Tobacco Board to act firm with the trade and, if necessary, even denotify some of the floors such as Torredu in Andhra Pradesh. “The farmer in that event can sell the crop wherever he wants and I am sure the stocks will be liquidated in quick time. The board can contemplate such radical measures to goad and prod the trade,” he suggested.

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