India: Tobacco Growers Stall Auctions for the Second Day

Source from:  The Hindu 04/06/2016

E-auctions on four platforms were suspended in the Southern Light Soil (SLS) and Southern Black Soil (SBS) regions on Tuesday as farmers stalled the proceedings in protest against the lacklustre market in the wake of cigarette manufacturers' decision to shut shop over the issue of larger pictorial health warning on cigarette packs.

The farmers on Ongole I auction platform as also in Tangutur II did not allow the auctions to commence as manufacturers partially withdrew from the market, while exporters tried to take advantage of the reduction in prices in the auction platforms across the SBS region, Tobacco Board sources said.

The situation was no different on the auction platforms of Kandukur II and D.C. Palli in Southern Light Soil(SLS) region with the farmers withdrawing their produce upset over low prices offered by the traders. There was only a minimum inflow of bales in the other SBS and SLS platforms with the manufacturers reducing their offtake "to about 20 to 25 per cent," Indian Tobacco Association sources said.

Sivaji's plea

Taking note of the lack of buoyancy in market, noted farmer leader and former MP Y. Sivaji urged the Tobacco Board to suspend the auctions on all the platforms till the impasse was broken. While the manufacturers reduce the offtake of Virginia tobacco, there was no let-up in the buying burley tobacco by the manufacturers, who according to information, had two to three months excess stocks with them and unutilised production capacities, Dr. Sivaji said.

Quantity traded

Only 40,540 kg of tobacco could be traded on SLS auction platforms and the average price realised was only rs 129.05 per kg, SLS Regional Manager said.

The quantity traded was still less at 34,989.80 kg on SBS platforms and the average price realised by growers was only rs 126.01 kg, SBS Regional Manager G. Bhaskar Reddy said. YSR Congress Whip in Parliament Y.V. Subba Reddy observed the auction proceedings in Vellampalli I and II and urged the cigarette manufacturers not to put the farmers to hardship.

It would be proper on their part to take up the issue of health warning with the Centre, instead of troubling the growers who had produced the crop as per the indents raised by them at the time of fixation of crop size by the Tobacco Board.

The Centre should come to the rescue of the growers, who were hoping to make good the losses incurred during last year, the worst one since the crop holiday declared in the year 2000, he said. Enditem