Rise in Tobacco Crop Area Causes Alarm

Source from:  The Hindu Online (in) 11/27/2008

ONGOLE: Despite best efforts of the government to reduce tobacco cultivation and encourage food crops, farmers are shifting from Bengal gram to tobacco on a large-scale in Prakasam district this year causing alaram. Agricultural officials expect that the area under Bengal gram is expected to decline from 1.1 lakh hectares to 85,000 hectares. At the same time, the area under tobacco is likely to increase from normal 70,000 hectares to 85,000 hectares this year. The Central government wants to discourage tobacco cultivation on health grounds. Tobacco Board has been straining to peg the area and reduce production so that farmers can get a remunerative price for their produce. But their efforts are coming to a naught. As tobacco fetched a fancy price of Rs. 60 a kg this year, farmers are being attracted to it leading to a spurt in the area. The indiscriminate cultivation may cause slump in the market and fall in prices. Most of the farmers are giving up Bengal gram in favour of tobacco. Bengal gram was introduced in Prakasam district when Tobacco Board declared crop holiday for tobacco 10 years ago. As farmers obtained good yields and price, the crop area shot up to one lakh hectares in just three or four years. Problems But problems started for Bengal gram farmers for the last two years. As the crop fetched handsome returns, farmers took land on lease and cultivated the crop on 100-200 acres. The annual lease went up to Rs. 10,000 an acre. The enterprising farmers stocked their produce in cold storage units and sold them when prices went up. As the area increased abnormally and the stocks piled up in cold storage units, the demand fell leading to fall in prices in the last two years. Added to this, the untimely rains in February this year, wrought havoc with Bengal gram and changed the fortunes of tenant farmers. All these factors compelled farmers to switch over from Bengal gram to tobacco this year. Enditem