Tobacco Board officials here have been instructed to take all steps to regulate the crop size in Andhra Pradesh and avoid production of excess crop, which may subsequently lead to problems of marketing, according to a press release issued by the board.

At a review meeting held earlier this week in New Delhi, Minister of State for Commerce and Industry Nirmala Sitharaman told the officials that Virginia tobacco production in AP should not exceed 120 million kg, the authorised limit. Farmers should be encouraged to go in for alternative crops, if necessary.

In the recently concluded auctions in Andhra Pradesh, 190 million kg of tobacco was sold at an average price of Rs 93.07 per kg against the authorised size of 172 million kg. The percentage of low-grade tobacco was more and the farmers faced marketing problems.

The Centre along with the State Government had to offer Rs 20 per kg assistance to the farmers to dispose off low-grade tobacco. The minister told the officials that such a situation should not crop up again and there should be no excess crop in AP during 2015-16 season.

In the ongoing auctions in Karnataka, so far 19 million kg of tobacco has been sold at an average price of Rs 137.28 per kg, up by Rs 20 per kg. Though prices in the State were good, there were more rejections on the floors. The minister instructed the officials to address the problem. They were also asked to expedite the auction process and finish it by the end of January.

Manoj Dwivedi, in-charge chairman of the Tobacco Board, participated in the review meeting along with senior officials of the board.

sarma.rs@thehindu.co.in

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