India: Grim Situation in Intl Markets

Source from:  Times of India 01/06/2015

Predicting fall in demand in the international markets for tobacco produces, Indian Tobacco Board chairman Dr K Gopal has cautioned the farmers against going overboard with additional crop. He said that sticking to the crop size fixed by the board could only realize them reasonable price and ease their troubles.

Speaking to reporters here on Monday, Gopal said that world production of FCV tobacco had been increasing in major tobacco producing countries like USA, Brazil and Zimbabwe, resulting in supply exceeding the demand. He said that they got inputs that several International cigarette manufacturers were holding huge carryover stocks which could further trigger the trouble in the demand-supply chain. He said that fall in consumption of tobacco in developed countries and consequent reduction in demand for tobacco was another a serious concern for the tobacco growers. "Besides, crisis in major import markets for India like Russia due to the devaluation of ruble is expected to complicate the things in Indian market by next season. I sincerely request the farmers to keep all these issues in mind and reduce the crop size and go for alternative crops," suggested Gopal. He said that production of quality tobaccos commensurate with demand was one way out. During 2014-15 crop season, Tobacco Board had fixed a crop size of 276 million kgs for FCV tobacco cultivation in AP and Karnataka where AP was allowed to go with 172 Mkgs and Karnataka with 104 Mkgs.

Board chairman said that total tobacco and tobacco product exports during April to November 2014 have reached 1,54,746 Million tons valued at Rs.3,476.09 Crores.He hoped that exports during 2014-15 would surpass last year exports which stood at Rs.6059 crores. Board ED C.V.Subba Rao, senior officials CSS Patnaik, B.N.Mitra, P.Manoj Reddy and K.Ravi Kumar were present. Enditem