India: Over-production Penalties Reduced

Source from:  Aug 1, 2012 08/02/2012

India's Ministry of Commerce has reduced the penalties levied on tobacco growers who produce flue-cured tobacco in excess of the quantities set by the Tobacco Board, according to a story in the latest issue of the BBM Bommidala Group newsletter. The fine on registered growers has been cut from 15 per cent of the farmer’s price to 7.5 per cent, while the fine on unregistered growers has been cut from 22.5 per cent to 15 per cent. The cuts are said to have been made in the wake of the significant increase that has occurred in the cost of production and as part of ministry efforts to support peasant farmers financially. The cuts are expected to benefit about 40,000 growers in Andhra Pradesh, where flue-cured auctions are in progress. Enditem