India: Tobacco Fetching Better Prices This Year

Source from:  The Hindu 11/20/2015

Even as the government continues to woo tobacco farmers towards sericulture to meet its commitment to the World Health Organisation (WHO), the produce is fetching the farmers in Karnataka a better price than last year.

During the first 33 days of the auction season, which began on October 7 this year, tobacco was sold at an average price of Rs. 138.02 per kg, which is a steep climb from the average of Rs. 117.99 per kg that it was fetching after a corresponding period of auction last year.

Tobacco is auctioned across 12 platforms in the State, mostly in Mysuru, and the auction season extends up to 90 days.

Disclosing this to The Hindu , officials at the Tobacco Board, however, said the quantum of tobacco yield is expected to slump to around 85 million kg this year from 103 million kg realised last year.

Better quality

The better remuneration for farmers has been attributed to harvesting of superior quality tobacco crop this year.

"Last year, there was little rainfall during May and June followed by a spell of heavy rainfall during July and August. This year, the climatic conditions changed, with rains lashing the area during May and June followed by dry conditions during July and August, which worked out well for the tobacco crop," an official said.

The decline in tobacco output has also been attributed to weather conditions in the tobacco-growing areas of Mysuru district.

Javaregowda, president of FCV Tobacco Growers Federation of Karnataka, said the quantity of bright grade tobacco that fetches a good price was harvested in a vast quantity this year in the State.

This was in contrast to the limited quantity of bright grade tobacco that was harvested in the neighbouring Andhra Pradesh, he said, adding that exporters had shown greater interest to purchase the superior quality Flue Cured Virginia (FVC) tobacco grown in Karnataka.

Reacting to the Union government's move to encourage tobacco farmers to shift to sericulture, Mr. Javaregowda said the farmers would not mind shifting to any crop that provides them good remuneration.

But, he felt that the Union government's policies, particularly on reduction of import duty on imported silk, had harmed the prospects for sericulture.

Though about five to 10 per cent of tobacco farmers in Mysuru region tried their hand with ginger cultivation this year, the price of ginger collapsed, causing them loss, he said.

2015-16

Quantity of Tobacco sold during the first 33 days of auction - 16.21 million kg

Average price after 33 days of auction - Rs. 138.02 per kg

2014-15

Quantity of Tobacco sold during first 33 days of the auction - 15.99 million kg

Average price after 33 days of auction - Rs. 117.99

Authorised crop size - 100 million kg

Anticipated yield 2015-16 - 85 million kg

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