There is a glut in the world tobacco market as the cigarette companies are carrying huge stocks and, therefore, the farmers in AP and Karnataka should strictly remain within the authorised crop limits, according to Tobacco Board chairman K. Gopal.

He was speaking here in the Board office on Monday morning after releasing the calendar for the year. He said the major tobacco producing countries like the US, Brazil and Zimbabwe had produced a lot of tobacco during the past two years and the supply right now was far in excess of the demand. Therefore, he said, farmers in the country should exercise great discipline. The Board has authorised 276 million kgs of virginia tobacco (172 million kgs in AP and 104 million kgs in Karnataka) for the crop year 2014-15.

He said auctions were currently in progress in Karnataka and plantation had been completed in Andhra Pradesh. He said that due to the consistent efforts of the Board, the crop area could be reduced in AP by 12 per cent. He sought the co-operation of farmers in both the states.

Gopal said the export of tobacco leaf and products from April to November, 2014, amounted to 1,54,746 tonnes valued at Rs 3,476.09 crores as against Rs 6,059 crores during the previous financial year. The exports during the current financial year are expected to exceed the mark, he added.

Executive Director C.V Subba Rao also participated in the meet.

sarma.rs@thehindu.co.in

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