Tobacco Board Lobbies With ITA on Crop Size

Source from:  Business-standard 08/09/2011

The Tobacco Board is now lobbying with the Indian Tobacco Association (ITA) on the crop size for the year 2011-12. The ITA had placed an indent for 120 million kg of tobacco for the 2011-12 season, as against the crop size of 170 million kg. The ITA claimed that it had no export orders from the global market, and it would not be possible for the traders to buy the crop at the prices fixed by the board. In the 2010-11 season, the crop size was put at 166.16 million kg spread over 116,316 hectares. This year, there was a fight between the traders and the farmers as the former have brought down the price to the average of Rs 94-110 against the board price of Rs 120 a kg. The farmers in Prakasam district have protested against this. The board had intervened and held talks with the traders and the farmers to solve the problem. Some of the farmers, including the Virginia Tobacco Growers Association president and former MP Yalamanchili Sivaji, have suggested a few alternatives like asking the board to intervene and purchase the crop. The farmers have even offered to wait for a couple of months for the money, if the board procured their crop. This would clear the stocks from the auction platforms forcing the traders to offer better price. However, the board is not inclined to get into the auction slot and is concentrating more on convincing the traders and the ITA. Enditem