India: ITC to Pick up Tobacco Stocks

Source from:  Times of India 09/18/2015

In a move to alleviate the crisis in tobacco market, chief minister N Chandrababu Naidu has requested the Centre to immediately press its agencies into purchases. He suggested that the tobacco board or the state trading corporation (STC) be allowed to pick up the stocks from the market on war footing basis.

The CM reviewed the situation with the tobacco growers, public representatives and officials of state and Centre here at his camp office here on Tuesday night. With the growers insisting that he convince the Centre to allow tobacco board to pick up the stocks which the merchants have refused to purchase so far, Naidu phoned union commerce minister Nirmala Sitharaman. He explained that farmers in AP were extremely worried about the chances of traders picking up the stocks as more than 50 million kg of produce is still lying with the growers. "The situation is very grim and the Centre needs to take steps to ease the burden of the farmers," he emphasised.

The CM wants the NDA government to take a final call on the issue soon after the union minister's visit. Promising to take a positive decision on the issue, Nirmala Sitharaman told the CM that she would be in Guntur and Prakasam districts on September 18 to meet the tobacco growers.

She said that she too was pained to learn about the suicides of the farmers and they would not allow the situation to go out of hand. "I will interact with the farmers and take a decision on the spot," Nirmala Sitharaman assured.

Later, the CM directed ITC chief executive officer Sanjiv Rangrass to see that they pick up at least 20 million of stock from the leftover produce and he would prevail upon the others to buy the remaining. He also suggested the ITC could adopt the families of the growers who committed suicides under Corporate Social Responsibility (CSR) initiative.

Following the deliberations, the growers representatives offered to pay about Rs 8 lakh to extend support to families of the deceased farmers. Similarly, Indian Tobacco Association (ITA) promised to donate Rs 5 lakh and tobacco board another Rs 5 lakh.

With the state government already announcing ex-gratia of Rs 5 lakh, each of the families would receive around Rs 23 lakh. The amount would be spent to clear the debts of the deceased and the welfare of their families, said tobacco growers leader Chunchu Seshaiah.

Tobacco board chairman Dr K Gopal, ministers Pullarao, S Raghavarao, Peethala Sujatha, MLAs Janardhan, Bala Veeraneya Swamy, MP Rayapati Sambasiva Rao, board member Gadde Seshagiri Rao were present. Enditem