Gujarat tobacco farmers stare at Rs 3,000-cr loss bl-premium-article-image

Our Bureau Updated - January 20, 2018 at 09:05 AM.

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The suspension of production by beedi and other tobacco products makers in protest against the ambiguity in the government's policy on pictorial warnings on tobacco products, seems to be taking a toll on tobacco growers.

According to the Gujarat Tobacco Merchant's Association, a tobacco farmers' body, as much as 360 million kg of tobacco produce valued at around Rs 3,000 crore is lying idle, leaving farmers in the lurch.

Due to suspension of tobacco products manufacture, companies have stopped purchasing tobacco from the farmers, causing a pile-up at farms.

"The overnight closure by tobacco products makers has created a situation of uncertainty for tobacco growers, who have stored their crop either in their fields or in their houses. It is unfortunate that at a time when they should be encashing their crop, their future is in the balance since there is no clarity from the government on pictorial warnings on tobacco products packaging," said Bhikhubhai Patel, president, Gujarat Tobacco Merchant's Association.

A tobacco farmer, Patel said farmers in Gujarat do not have adequate storage arrangements for their tobacco produce. "For them, religious and social activities are beginning. At this time, they need cash on hand. But after harvest, all they are left with is a pile of unsold tobacco," said Patel. Gujarat has about 1,50,000 hectares under tobacco cultivation, with a yield of about 2,000 kg per hectare. Currently, tobacco prices in the state are ruling in the range of Rs 60-90 per kg for different qualities.

"If it rains before the resumption of tobacco sale in Gujarat, the entire stock worth Rs 3,000 crore will be reduced to garbage," he said, adding that Gujarat produces the non-Virginia variety of tobacco, which is largely used for beedi-making, while a portion of it is used as raw tobacco for chewing, khaini, etc.

The association alleged that the sudden enforcement of regulations to enlarge graphic health warnings on tobacco products to 85 per cent starting April 1, 2016, by the Centre has harmed farmers more than the companies.

Published on April 16, 2016 06:17