Lower Price Worries Tobacco Growers

Source from:  The Hindu 05/27/2014

At a time when the Tobacco Board is in a buoyant mood for achieving a record export target, the plummeted price of the crop is triggering discontent among the growers of Virginia tobacco in the northern light soils (NLS) areas in 15 upland mandals of West Godavari district.

The Virginia Tobacco Growers Welfare Association at a meeting at Jangareddygudem recently has resolved to take up the issue with the Tobacco Board Chairman.

The A-grade variety is being sold at Rs. 170 in Karnataka, while the same is hovering around Rs. 160 in the NLS area. Andhra Pradesh Rytu Sangham (APRS) has decided to stall the trading at the auction platforms at Jangareddygudem on Wednesday (May 28), seeking the Tobacco Board's intervention for price stabilisation.

Production goes up

Farmers have cultivated Virginia tobacco in 60,000 to 70,000 acres in NLS area and the production is expected to touch 63 million kg this year. Unlike the trend, yield of the `bright variety' (A1 and A2 grades) is much higher (70-80 per cent) this time and this is attributed to good climatic condition and increasing awareness among growers on quality of the produce.

According to G. Satyanarayana (Dattudu), Tobacco Growers Association spokesperson, the spurt in the bright variety has resulted in cartelisation of traders. "The market is flooded with quality produce and the traders are adopting a wait and watch approach," he said.

Unhappy with the price for good quality tobacco which stood at Rs. 198 last year, growers are said to be reluctant to bring their produce to auction platforms.

Mr. B. Balaram, APRS district committee secretary, wondered as to why the produce was being sold at lower price when there was no slump in international market for the Virginia tobacco of the NLS brand.

The lower prices had delivered a blow on tenant farmers who had invested Rs 2.5 lakh to Rs 3 lakh per acre on lease, he said.