Tobacco Traders Want Cut in Crop Size, Farmers Upset

Source from:  The Times of India 08/05/2011

GUNTUR: The cash-rich tobacco trader lobby has decided to trim its 'indent' for the next cropping season sending shock waves among the growers. The tobacco traders' association members, who met the Tobacco Board officials a few days ago, submitted a representation seeking the board to fix the crop size at 120 million kg for next year. Sources said the traders' move ahead of the crucial meeting of the board is to bring pressure on the authorities not to pressurise them to pick up stocks at higher prices at the ongoing auctions. Board chairman G Kamalavardhan Rao, however, appealed to the traders to be fair. While the board authorised a crop size of 170 mkg for 2010-11, the request of the traders to cut down the crop size to 120 mkg for 2011-12 is believed to be a clever ploy to unnerve the growers. The traders believe that the board was exerting pressure on them to increase the price whenever the farmers agitate because of the 170 mkg indent given by them ahead of the last season. "The board cannot use pressure tactics if we give less stock indent for next season," said a trader. The traders contend that the reduction in the export orders is not allowing them any scope to go for higher rates and purchases. Since they were being made to pick up 170 mkg stocks from AP and another 100 mkg from Karnataka they might be left with surplus stocks, the traders argue. "Bringing the crop size down to the mutually desired levels is the best solution particularly when the demand for tobacco in the international market is coming down," said an exporter Mittapalli Umamaheswara Rao. The board authorities, however, were not convinced with the traders' arguments. "I have suggested to them not to employ arm-twisting methods. How is it possible to reduce the crop size at one go," Kamalavardhan sought to know. He said that they could bring down the crop size gradually by suggesting to the farmers to go for alternative crops in due course. "Is it possible to increase the crop size if traders get additional export orders?" he asked. The farmers on the other hand are apprehensive. "How could the traders slash the crop size drastically? We were hoping for an increase in the crop size next year. The board must step in to help us," a grower Gade Ramaiah said. According to sources, the board is planning to convene a meeting either in the last week of August or first week of September. Four MPs, who are board members, have asked the authorities to wait till the Parliament session adjourns. Meanwhile, the traders body is planning to meet again before the board meeting and give the final stock requirement projection. Enditem