Tobacco Board Chairman G. Kamalavardhana Rao has been named Revenue Secretary of Kerala. In an interaction before relieving himself from the board post, he spoke to Business Line on the status of the tobacco cultivation, new growth markets for Indian produce and efforts to reduce cultivation of the crop that is facing global resistance.

Tobacco farmers are unhappy because they have no say in FCTC (Framework Convention on Tobacco Control) talks. What do you think about this?

I strongly feel that the farmers should have a say in the talks. We say they should take the view of the farmers and Tobacco Board. There is a whole of lot of ecosystem that needs to be addressed before we take a decision on the curbs.

We need to show employment opportunities to those involved in the farming and trade. Farmers need to be shown alternatives. In fact, FCTC mandate itself is to offer viable alternatives.

Anti-tobacco campaign is gaining momentum world over, bringing pressure on Governments to reduce tobacco acreage…

We need to educate the farmers to move away. We should be able to suggest alternatives. We have reduced the size of the crop by 5 per cent last year and nobody protested. This year too the Board is planning to reduce the size by another 5 per cent. As a signatory to the FCTC protocol, we need to educate the farmers to shift to other crops.

What are the new export markets for the Indian tobacco?

We are confident that we will win China back. They are willing to buy our tobacco. They import 100 million kg of tobacco. We are targeting 10-20 per cent of it. We have the price advantage. Our price is far lesser than that of Zimbabwe from which China imports the most. Other markets such as South-East Asia and Africa too are promising. The demand for (tobacco) products is increasing in the Gulf.

What are the export prospects for this financial year?

Last year, we have registered exports of Rs 4,170 crore. We are targeting a growth of 25-26 per cent and close at Rs 4,500-4,600 crore for the full year. We are able to achieve this rate for the April-September period this year, over the exports of the same period last year.

How has been the e-auctioning system functioning and what is it going to offer for the farmers?

We have successfully implemented the system in Karnataka where auctions were conducted in all the 11 platforms there. Andhra Pradesh auctions too will be held electronically when they start in February next year. It ensures transparency in weighing; it allows the farmers to listen correctly to the prices offered by traders and dealers. Earlier, these things were done in a chaotic environment, leaving the farmers to guess the prices.

Tobacco farmers are at the mercy of nature. Unlike their peers growing other crops, they don’t have any cover in times natural disasters…

They are going to get crop insurance very soon. The Ministry of Commerce has written to the State Governments for their nod to introduce insurance for crops such as tobacco and tea. The Centre will bear 50 per cent of the premium costs, with the State concerned and farmers contributing 25 per cent each.

For tobacco, the board will contribute half of their burden. This is awaiting the State’s nod. I hope this will be completed soon.

kurmanath.kanchi@thehindu.co.in

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