Tobacco auctions in Andhra Pradesh are likely to commence from the first week of March and arrangements are being made to open auction floors in phases, according to Mr Kamalavardhana Rao, the Chairman of the Tobacco Board here.
Speaking to Business Line here on Wednesday, he said the crop outlook in Andhra Pradesh was quite good this year and “there is not likely to be any surplus. The authorised crop size in the State is 158 million kg and the crop may be around 160 million kg, which is quite acceptable. Farmers have heeded to the request of the board and exercised discipline.”
However, he said, there was some crop damage in Nellore and Prakasam districts in 5,000 hectares or so due to winter rains.
“We have written to the Ministry to provide relief to the farmers. In accordance with norms, we will make arrangements for rescheduling of loans and other relief measures. In the other areas, especially in the northern light soils of West Godavari district, the crop is very good.”
Referring to Karnataka, where the auctions are going on currently, he said that so far roughly 70 million kg of tobacco had been sold on the floors in that State at an average price of Rs 95-97 per kg, which was Rs 3-4 more per kg than last year.
Roughly, 30 million kg more would have to be sold and the auctions in the State may conclude by the end of March, he said and added that farmers in the State had no cause for complaint.
In response to a question whether the same trend would continue in AP and farmers could expect a good price on the floors, especially as there was no surplus, Mr Rao said the board would always strive to secure remunerative prices for the farmers, but “it does not depend on a single factor”.
Growers' view
In another statement, Dr Y. Sivaji, the honorary president of the AP Tobacco Growers' Association, said the Tobacco Board should make all efforts to open auction floors in Andhra Pradesh as soon as the crop is ready and there should not be any delay on account of Karnataka, as otherwise the farmers in the State will lose heavily. He said the association had made an appeal to the Tobacco Board to that effect.
He alleged that during the past few years the tobacco trade in India had got into the bad habit of buying crop straight from the auction floor and exporting it.
“Tobacco auctions in AP and Karnataka keep alternating, and throughout the year auctions are going on in one State or the other, as tobacco is a monsoon crop in Karnataka and a late kharif or early rabi crop in AP. It suits the trade very well, but the farmers in both States are losing. The trade is not maintaining any inventory and only after securing export orders it buys from the floors. Even the inventory costs are passed onto the farmer,” he said.
He said FDI should be allowed in tobacco processing sector for farmers to get their due, and he had made an appeal to the Union Government.