Tobacco Procurement Price Raised by 20 pc

Source from:  kantipuronline.com Kantipur Report KATHMANDU, Aug 11 08/13/2007

In a bid to lure more farmers into tobacco farming, Janakpur Cigarette Factory (JCF) board meeting held on Thursday, has decided to increase procurement price of tobacco leaves by 20 percent, said a high ranking JCF official. "Much to the relief of tobacco farmers, JCF board has come to the decision of raising procurement price of tobacco," said Ram Lakshan Sharma, acting general manager of JCF. He said that with the increased price, more farmers are expected to be lured into farming of tobacco, the once lucrative cash crop in the terai belt. Tobacco price had remained static for more than a decade. The price used to be fixed with the joint meeting of representatives from Tobacco Development Company (TDC), Ministry of Agriculture, and Ministry of Industry and Commerce. But the TDC was dissolved a decade ago. JCF has sent the board decision to the Ministry of Industry, Commerce and Supply (MoICS) for approval. "One approved, it will be effective immediately, keeping in mind that the sowing season of tobacco seed is round the corner," said Sharma. According data of JCF, the existing price of Virginia No 1, Virginia No 2, Virginia No 3, and Virginia No 4, Virginia No 5 tobacco stand at Rs 65, Rs 55, Rs 49, Rs 44 and Rs 36 respectively. Likewise, price of Natu 1, Natu 2 and Natu 3 have been priced at Rs 40 , Rs 35 and Rs 29 respectively. The decision has come at a time when the most tobacco farmers have switched to other crops due to stagnant price of tobacco for long time, which has cut down profit margin. "We have expected that the production volume of tobacco leaves to jump up to 500 to 600 tons this year," said Sharma, adding that the expected surge in tobacco production within the country would save at least Rs 50 to Rs 60 million. Almost cent percent of the local demand of tobacco leaves has been supplied from India and Bangladesh. Domestic production of tobacco stood at around 35 tons last year. Sharma also informed that JCF is planning to extend technical advice to farmers along with providing improved seeds of tobacco from Andrapradesh of India. Enditem