Buyers Might Recommend 40 Per Cent Cut in AP Quota

Source from:  Tobacco Reporter 07/01/2011

The Indian Tobacco Association is considering whether it should recommend to the Tobacco Board of India that Andhra Pradesh's flue-cured production should be cut by more than 40 per cent next season, according to a story in the latest issue of the BBM Bommidala Group newsletter. The association is considering making a proposal because falling prices this season have caused hardship for tobacco growers. The board has set the Andhra quota at 170 million kg during the past three seasons but the association probably wants that dropped to 100 million kg for the 2011-2012 season. The association says that the international flue-cured market is in over-supply because of bumper harvests in Brazil and Zimbabwe. And it says that the poor prices were also the result of lower quality tobacco having been produced in Andhra following unhelpful weather during December. The board has already announced that it intends to increase the penalties it levies on unauthorized tobacco production next season. And, earlier this month, some growers in the Prakasam district of Andhra launched a signature campaign to press for the announcement by the board of a tobacco crop holiday throughout the country. Enditem