For over three generations, Kapilavayi Subba Rao’s family has been growing tobacco at Kanchikacharla in Krishna district. In the last two years, he along with 2,000 other tobacco farmers, has decided to stop growing this crop that is facing global controls. Most of them moved to cotton, maize and chana.
Reluctance by trade to buy tobacco grown in central black soil area and raising anti-tobacco campaign seem to have made them to quit tobacco farming in the area that come under Keesara platform. Farmers used to grow 12 million kg (mkg) of Virginia tobacco (or flu-cured tobacco) and considered to be one of 11 platforms in the State.
The production in this area now fell to just 1.10 mkg last year with almost all of the 2,000 tobacco farmers deciding to quit this crop for good in an extent of 4,000 hectares.
Subba Rao told
Tobacco production and procurement happen across different platforms where representatives of companies, dealers and traders come on a designated day and buy the lots farmers. “This year they are growing to grow in under 200 hectares,” Kannaiah, Chief Auction Manger of the Tobacco Board, told Business Line.
There are broadly three reasons for the shift: increase in cost of production; reduced demand for the variety grown there and losses in the last two years due to natural calamities. Decrease in process from Rs 98 a kg in 2009 to Rs 70 in 2010 and Rs 50-60 a year later; the cost of labour used to constitute 40 per cent of the cost of production. It went up by 2-3 times in the last three years, making it unviable to go for tobacco.
G. Kamalavardhana Rao, the outgoing Tobacco Board Chairman, admits that there was a general decline in interest among tobacco farmers. “The production has come down to 265 mkg in April against 320 mkg in September 2010,” he said.
Subba Rao, however, says the permission to sell licences to the neighbouring NLS (northern light soil) farmers under Jangareddygudem platform had come very late. “We are asking them to allow us to sell licences through 2013 to help us clear debts,” he said.