The central government has asked the state-run Tobacco Board to act as an agency to purchase unauthorised flue-cured virginia (FCV) tobacco crop produced in 2000-01 season by the unregistered growers in Andhra Pradesh.
According to officials, the board can directly purchase the unauthorised tobacco crop at all its auction platforms at the minimum support price (MSP).
This authorisation to the board, however, has come with a stipulation that 40 per cent of the tobacco sales proceed would be contributed to a tobacco fund by every unregistered grower.
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To facilitate this, the government has relaxed the operation of the provision of Section 10 of the Tobacco Board Act, 1975 in the state up to June 15, 2001, the officials said.
Andhra Pradesh had opted for a tobacco crop holiday for the 2000-01 season. The production of FCV tobacco this season is estimated at 1.5 million kg.
Earlier in March, regular and registered traders and dealers of the board had been allowed to purchase the unauthorised FCV tobacco cultivated this season by the Andhra Pradesh farmers.
The tobacco traders attribute the change in the central government attitude, in the last two months, to their persistent demand for the purchase of this season