The Tobacco Board, which works under the Union Commerce Ministry to regulate the crop, has fixed the crop size at 172 million kg (mkg) for Andhra Pradesh, allowing a marginal increase of two mkg over the last year’s figure.
Auctions completed
“We have just completed auctions in Andhra Pradesh and the total tobacco auctioned stood at 173 million kg. Our endeavour is to encourage the farmers to look at alternative crops and go for crop rotation,” Tobacco Board Chairman K. Gopal told Business Line .
The board fixes the crop size for farmers in tobacco-growing States and farmers are required to register with it to get sanction for the crop. The entire crop that goes beyond the fixed size will not be auctioned.
The board imposes penalties on such unauthorised crop. The board collected about Rs 25 crore as penalties last year. He said the board was encouraging farmers to use green manure in order to reduce dependence on chemical fertilisers.
The State, which surpassed the crop size limit slightly, also recorded the highest ever price this year.
A farmer in West Godavari district received Rs 200 a kg as against the average of Rs 145 for the year.
“Thanks to e-auction, even small buyers are able to take part in auctions,” Gopal said.Modernisation of barns, too, was underway to increase efficiency of fuel in barns.
Meanwhile, auctions have begun in Karnataka, which has a different cropping season for the crop.
The board had set a crop size of 102 million kg for that State.
Caution
“We have advanced the process and we would like to complete auctions by December. We don’t want to drag it too long,” the Board Chairman said. Fearing significant increase in the production of excess and unauthorised tobacco this year, the Board has asked its officials in Andhra Pradesh and Odisha to keep tabs on the nurseries.
The board has a reason to be apprehensive.
The farmers received higher average of Rs 145 a kg last season. This was some Rs 25 more than the previous year.
“The staff shall have to be more vigilant and ensure that the growers stick to their production quotas. Over production of tobacco could lead to a glut in the market and fall in prices,” C.V. Subba Rao, Executive Director, of the Board said in a recent directive.