Tobacco Board Chairman Cautions Farmers on Surplus

Source from:  Business Line (The Hindu) 05/25/2009

It is very gladdening that tobacco farmers in Andhra Pradesh are getting record prices this season on auction floors, but they should also exercise caution and should not grow surplus crop, according to Mr J. Suresh Babu, the Chairman of the Tobacco Board. Mr Suresh Babu visited the five auction floors in West Godavari district on Wednesday - two at Jangareddigudem and one each at Koyyalagudem, Gopalapuram and Devarapalli - to interact with the farmers. The maximum price for tobacco touched a record Rs 164 a kg on Wednesday on the floors in West Godavari district. Expressing happiness at the prices, the chairman sounded a word of caution. He told the farmers that they should strictly adhere to the crop size prescribed by the Tobacco Board based on the trade projections and the international demand. "This is a good year, as there is shortage in the international market, especially Zimbabwe and Brazil. But you should not grow surplus. You should not construct additional barns," he told the farmers. He also said that the western countries were trying to develop alternatives to Indian tobacco, by encouraging the crop in some African countries, as the prices were pretty high in the Indian market. Besides, China may also pose a threat if it decides to dump cheap tobacco in the international market in future. However, in the near future, there may be no real threat to Indian tobacco. The farmers should, however, be aware of what was happening in the international market and co-operate with the board in regulating the crop. Only then could they hope to sustain these high prices. Mr. V. Manmadha Rao, the regional manager of the board, accompanied the chairman. Enditem