BETTER PRICE FOR TOBACCO GIVES RELIEF TO TOBACCO GROWERS

Source from:  pib.nic.in 05/27/2005

Chairman, Tobacco Board, held a joint meeting with the tobacco growers' representatives of Andhra Pradesh and the members of the tobacco trade on 24.05.2005. Two grower representatives from each auction platform and other important leaders of the growers attended the meeting. The trade was represented by the President, Indian Tobacco Association, manufacturers and exporters. The grower representatives and the Chairman, Tobacco Board argued for better price realization to tobacco growers, in view of increased cost of cultivation. The trade represented by Indian Tobacco Company (ITC) and Godfrey Phillips India (GPI) agreed to purchase additional quantity of 5 to 7 million kgs. and 2 to 3 million kgs. respectively. The President, Indian Tobacco Association, assured that the prices would not fall any further and the average price would increase in near future. The impact of this meeting was felt almost immediately in the market. The prices in the Northern Light Soil areas have gone up by Rs.1 to Rs.2 per kg., while in the other areas, the prices have increased by Rs.0.50 to Rs.1 per kg. As a result, the average price realisation on 24.05.2005 increased to Rs.37.14 per kg. compared to Rs.34.61 per kg. on 21.05.2005. This amounts to an increase of Rs.2.53 per kg. over the last 3 days. As against an estimated production of 146.21 million kgs. tobacco in Andhra Pradesh this year, 77.12 million kgs. has already been marketed. The daily off-take is about 1.7 to 1.8 million kgs. The trade is confident that the entire crop in Andhra Pradesh will be marketed at remunerative prices to the growers. Enditem