With tobacco farmers agitating for remunerative prices, auctions at the 11 platforms spread over the southern black soils (SBS) and southern light soils (SLS) in Prakasam and part of Nellore districts are yet to start. Tobacco growers are on strike since June 2, demanding higher prices and have refused to bring the product to auction platforms since June 9.
The requests by Tobacco Board chairman, G Kamalavardhana Rao, to increase the price to Rs 120 a kg from Rs 104 a kg had fallen on deaf ears and farmers were left with no option but to keep off from the auction centres.
On the other hand, buyers say the tobacco prices in the international market have come down and there were no export orders on hand. In addition, the crop in SBS and SLS was of low quality due to incessant rain in December 2010. In some parts, farmers have gone for a second crop in January replacing the damaged and discoloured crop. This had increased the investment for the farmers, which is why they were demanding higher prices.
Board executive director, C V Subba Rao, said they were also holding talks with buyers to increase the price. “We are expecting a positive response from the buyers by this weekend,” he added.
In Andhra Pradesh, 57.71 million kg was sold by June 8 at an average price of Rs 112.19 a kg. This was against 91.17 million kg sold at an average price of Rs 98.63 a kg during the same period in 2010.
“The price offered to the farmers this year is comparatively more than the previous year. Due to increased investment, it is not working out for farmers and hence the agitation,” Subba Rao said.