The Tobacco Board is planning to introduce electronic auctions (e-auctions) in Karnataka from 2011-12 across all its auction platforms. The board has earmarked a capital expenditure of Rs 30 crore for the purpose, a top board official said.
“The purpose of e-auctions is to ensure transparency in the sale and protection of farmers’ interest in the documentation procedure. The board has also decided to install closed circuit (CC) cameras at auction platforms in Karnataka,” G Kamala Vardhana Rao, Chairman, Tobacco Board, told reporters.
He said the board is also setting up three more auction platforms in Karnataka in addition to the 11 existing platforms. The new platforms will be opened in Ramanathapura in Hassan district, H D Kote in Chamarajanagar district and Bettadapura in Mysore district. They will be operational from September 2011 to coincide with the next harvest. The e-auction system would come into effect in Andhra Pradesh from February 2012.
The Tobacco Board is also proposing to impose a heavier penalty on unauthorised tobacco growers this year. “During the last tobacco crop year 2010-11, we saw 28 million kgs of excess production of tobacco in Karnataka. In order to discourage unauthorised cultivation, we are proposing a heavy penalty,” Rao said.
Last year, the board had fixed a crop size of 100 million kgs for Karnataka and 170 million kgs for Andhra Pradesh. But, the production in Karnataka has increased by 28 per cent to 128 million kgs, while it is likely to dip 29 per cent to 120 million kgs in Andhra Pradesh this year. The drop in production there is mainly due to the heavy rains in November and December. Harvesting in Andhra Pradesh is yet to be completed this year, Manju Pillai, director, Karnataka, Tobacco Board, said.
She said the board has fixed a 101.6 million kg target for Karnataka for 2011-12. The saplings are presently being raised at the nursery the year.
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In order to control the unauthorised cultivation of tobacco, the board has proposed to levy penalty upwards of 15 per cent for the next crop. “The board sent a proposal to the commerce ministry and is waiting for approval,” she said.
For last year’s crop, the board had fixed 15 per cent on the total sales value and Rs 2 per kg as penalty for excess production for both authorised and unauthorised cultivation. For next year, the board is seeking to levy a differential penalty for unauthorised cultivation, she said.
During 2010-11, India’s tobacco production is estimated at 730 million kgs, of which Flue Cured Variety (FCV) accounts for 270 million kgs.