India's Flue-Cured Growers Face Heavier Fines

Source from:  Tobacco Reporter 05/19/2011

The Tobacco Board of India is preparing to impose a heavier penalty on the production of unauthorized flue-cured tobacco grown in the principal growing states of Karnataka and Andhra Pradesh, according to a story in the latest issue of the BBM Bommidala Group newsletter. The board is concerned that production above the authorized level puts downward pressure on prices, which have already decreased because of global oversupply. Fines upwards of 15 per cent are expected to be imposed starting from the next crop, which will be in Karnataka. Last year, Rs300 million was collected from farmers in fines. News of the heavier penalties has come at an odd time. Although the 2010/11-crop of Karnataka produced 28 million kg more than the authorized 100 million kg, in Andhra, unhelpful rains mean that the 2011 crop is thought to be 50 million kg under the authorized level of 170 million kg. Enditem