India: Tobacco Ryots Threaten To Stall Auctions

Source from:  The Hindu 05/28/2019

Farmers from across the 12 auction platforms in Prakasam and Nellore districts on Monday threatened to stall the e-auctions being conducted in the Southern Black Soil and Southern Light Soil(SLS) regions during the first of June.

Taking stock of the lacklustre market conditions prevailing in the two regions at a meeting held here, YSR Congress Party Farmers wing Prakasam district President Mareddy Subba Reddy said at the commencement of the e-auctions, the traders promised to offer a minimum of ? 100 per kg for low grade varieties.

But the traders are driving down the prices as the auction progressed by ?10 to ?90 per kg to low grade varieties, which accounted for a majority of the produce this year in view of the poor grade out-turn due to adverse weather conditions.

The farmers from auction platforms of Vellampalli, Ongole I and II, Tangutur I and II, Podili, Kondepi, Kandukur I and II, Kangiri, Kaligiri and D.C.Palli feared that the prices might fall further to ?85 or ?80 per kg if the Tobacco Board did not intervene to bring back buoyancy to market.

“We will resort to indefinite boycott of the auctions after waiting till June 5 as the traders hope to get confirmed orders from overseas buyers by then,” Mr. Subba Reddy said.

Low grade varieties and greens accounted for 50% of the estimated production of 80 million kg this year. The bright grade accounted for 20% and medium grade varieties the rest in a year when the acreage went up about 8,000 hectares to 58,000 hectares, he explained.

The farmers also decided to draw the attention of the Union and State governments to their plight in a year when they could not break even if the average price realised was below ?150 per kg for tobocco, said Ongole II Auction platform Farmers Association President V.V. Prasad.

‘High rejection rate’

Prolonged dry spell and parasitic weed infestation had hit productivity this year to an average 5 quintals per acre as against the normal 10 quintals, explained Vellampalli auction platform Farmers Association president N. Chimpriyapa.

They were worried over the “high rejection rate” for low grade varieties as they would not be able to break even, leave alone getting decent returns.  Enditem