India: Tobacco Purchases Surpass Total Crop Size

Source from:  The Hindu 11/25/2015

Tobacco growers have realised an average price of Rs 93.07 marketing 190.05 million kg as against the crop size of 172 million kg in the just-concluded auctions, Union Minister Nirmala Sitharaman said.

The auctions in the State were prolonged up to November because of difficult market conditions on account of subdued demand for tobacco and because of production of more of low grade tobacco due to abnormal weather conditions and outbreak of tobacco root parasite "Orabanche", she said at a review meeting in New Delhi.

She wanted the Tobacco Board officials to enlighten the farmers to stick to the crop size of 120 million kg fixed for the next season.

It may be noted that the trouble for ryots in traditional tobacco growing areas in Prakasam was more pronounced with seven farmers committing suicide in the wake of the trade allegedly reneging on its promise to buy their produce within the price band at a meeting convened by the Union Minister in Vijayawada in July.

The trade had agreed to purchase the bright grade in traditional areas between Rs. 109 to Rs.114 per kg, medium grade between Rs. Rs.97 ando Rs.102 per kg and low grade between Rs.62 and Rs.67 so that the ryots could get an average price of Rs.95 to Rs.99, official sources recalled.

In the case of Northern Light Soils, the trade promised to offer Rs.127 per kg for bright grade and Rs. 113 per kg for medium grade and did not show any interest in low grade tobacco in NLS.

While the average price realised in southern black soil auction platforms was only Rs. 83.54 per kg for the 64.47 million kg marketed, the price realisation was a poor 79.46 per kg in southern light soil auction platforms for 57.01 million kg sold, the sources said. As many as 27,950 growers of the 45,923 growers got a compensation price of Rs. 22.40 crore (Rs.16.80 crore from the Centre and Rs.5.60 crore from the State for 11.23 million kg of low grade tobacco marketed by them. Enditem