The Indian tobacco exporters should arrive at some understanding on the minimum export price (MEP) among themselves and they should not undervalue, or undersell the product in the international market, according to Tobacco Board chairman K Gopal.

He was addressing the farmers, cigarette manufactuers and the exporters here on Friday on the occasion of the Tobacco Board formation day. He recalled the services of leaders like the late K Raghuramaiah in the formation of the board.

He said the tobacco exports from the country during the last financial year amounted to Rs 6,100 crores and during the current one they may cross Rs 6,500 crores or even Rs 7,000 crores.

However, the brand image of the Indian tobacco abroad should be improved.

"It is always a buyer's market when it comes to Indian tobacco and I think we should change the situation and build a sustainable market for our product in spite of the many challenges. Both the farmers and the trade should strive together to achieve this objective," he said.

In the first place, farmers should adopt good farm practices and produce quality tobacco with the right chemistry, sticking to the prescribed crop size, and then the trade should sell it right in the global market.

He said it was the duty of the trade to support the farmers in times of crisis by paying the minimum guaranteed price (MGP), even though there is no law or statute to that effect.

"In countries, where there is contract farming and the cigarette manufacturers are supporting it, farmers are getting good prices. In countries where cigarette manufacture is a state monopoly, farmers are getting good prices. The Indian situation is different. There are at times challenges on the price front, but the role of the board is only that of a facilitator, not an enforcer," he remarked.

sarma.rs@thehindu.co.in

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