Andhra to Provide Minimum Support Price Funds

Source from:  Tobacco Reporter 06/09/2011

Andhra Pradesh's Chief Minister, N. Kiran Kumar Reddy, has agreed to provide up to Rs200 million to help provide a minimum support price for tobacco growers, according to a story in the latest issue of the BBM Bommidala Group newsletter. The money will allow farmers' associations to buy tobacco during the auctions, a strategy aimed at forcing national and international tobacco buyers to pay at least the minimum support price. The Chief Minister said that he would bring the issue of poor prices to the attention of the Indian government. And he directed traders to offer at least Rs124 per kg for tobacco, though his plea is likely to fall on deaf ears. Last week it was reported that the Indian Tobacco Association had turned down a request to increase by Rs15 per kg the purchase price of leaf at auctions being held in Andhra Pradesh. The increase, which would have taken the price of tobacco to Rs120 per kg, had been requested by the Tobacco Board of India because growers in Andhra were said to be incurring heavy losses. Meanwhile, health officials in the tobacco growing state of Gujarat are calling for the use of safety gear because of concerns about green tobacco sickness among farm workers. According to the National Institute of Occupational Health, Ahmedabad, the dermal absorption of nicotine from tobacco plants is affecting 47 per cent of workers. Enditem