Country-tobacco sees market shrink by half

The annual market for country-tobacco crop in coastal Andhra, which used to be Rs 100 crore till 1999, has now shrunk by almost 50 per cent.

The crop, also called chewing tobacco, is totally different from cigarette tobacco and is used in snuff and domestic cigars. The country-tobacco crop is cultivated only in Krishna, West Godavari and Khammam districts.

While drought hit crop cultivation for three successive years from 2000-02, last year cyclones destroyed the crop in many villages, causing irrecoverable losses to farmers. Consequently, production of country-tobacco has come down from 410 lakh kg in 1999 to about 200 lakh kg at present.

Speaking to Business Standard, P Satyanarayana, a farmers' leader at Gollapudi, said: "The step-motherly treatment meted out by the government and the apathy of the financial institutions are some of the reasons behind this grim situation."

"The crop does not come under the purview of the Tobacco Board and the farmers do not get loans from banks and co-operative institutions also. So they have to depend on private lenders. Last year, when cyclones washed away the crop, a number of farmers could not repay their loans. They do not come under the purview of any association and the government does not provide them with storage and marketing facilities also," Satyanarayana added.

This year, fewer farmers are opting to cultivate this crop. The farmers of upland areas are growing the crop in about 34,000 acres in the three districts. The crop is being cultivated in about 12,000 acres in Krishna district. While farmers incur an expenditure of Rs 9,000 per acre and reap 600-720 kg, they get an average rate of Rs 24 per kg in the open market.

About 200 stockists purchase the crop. Most of them have their shops at Eluru, district headquarters of West Godavari. They distribute the crop to over 1,000 retailers all over the state. However, due to the reduction in production of country-tobacco from 410 lakh kg in 1999 to about 50 per cent now, the stockists have begun marketing the crop for only two days a week, namely Tuesday and Friday.

The Union and state governments' moves towards the tobacco sector has not been encouraging for the traders and the farmers, Country Tobacco Traders' Association president K Vidyadhara Rao said. The traders, on their part, demand that the government scrap the one per cent cess, considering the present adverse market conditions. They recently submitted a memorandum to chief minister Y S Rajasekhara Reddy in this regard, he added.

Known for its pungent smell, country-tobacco is an addiction with its customers. Many women in north coastal districts have a fancy to smoke cigars made of country-tobacco, with the lighted end in their mouths.