Tobacco Board Revises Production Target

Source from:  KVVV CHARYA financialexpress.com Monday, September 11, 2006 at 0000 hours I 09/11/2006

HYDERABAD, SEPT 10: Owing to pressure from farmers associations, the Tobacco Board (TB) has finally revised the production targets for the season. It has decided to cap the authorised production at 150 million tonne for the year 2006-07, as against the earlier decision of 129 million tonne, a source said. The board met here last week and also decided to impose penalty for excess production at the rate of Re 1 per kilo. However, the board has requested the farmers not to produce more than the authorised limit since it would result in fall in prices. According to Y Shivaji, president of Virginia Tobacco Growers Association, while there is enough demand for the tobacco grown in Andhra Pradesh, the board has always enhanced the authorised production for Karnataka. "When the trade bodies are projecting a demand for 171 million tonne, we are targeting to produce only 145 million tonne," Shivaji said. Besides the demand for tobacco in international market has also increased, he added. The farmers also wanted a minimum support price (MSP) for tobacco to be fixed. Moreover, the board members have suggested to the chairman J Suresh Babu to call the trade associations and negotiate a base-line price. Enditem