Helping farmers reap rich tobacco yield

Productivity initiatives taken up by the Indian Leaf Tobacco Development (ILTD), a division of ITC, have helped farmers achieve increased tobacco yields. These initiatives have also brought down the cost of production and made the quality of tobacco popular among the buyers all over the world.

ITC, the largest developer, processor, and exporter of cigarettes in the country, purchased over 50 per cent of about 220 million kg tobacco produced by farmers of Karnataka and Andhra Pradesh in 2005-06 financial year. It exported 50 million kg and reserved 60 million kg for domestic market.

S Janardhan Reddy, chief executive, ILTD-ITC Ltd, pioneered the productivity initiatives in the light soils of Karnataka and northern light soils (West Godavari) and Yeleswaram burley soils in Andhra Pradesh.

In an interview with Business Standard, he dwelt at length on the ILTD contribution to the tobacco sector, about crop size, exports, varieties, and crop's future. Excerpts:

What is the outcome of ILTD-ITC productivity initiatives?

ILTD took the help of the Central Tobacco Research Institute (CTRI) and the Tobacco Board in executing the productivity initiatives.

As a result, farmers of northern light soils (NLS) in Andhra Pradesh increased tobacco yields from 1,100 kg per hectare (1992) to 2,000 kg now. The CTRI should be commended for giving a suitable variety 'Hema' to farmers of black soils. Their harvest has gone up from 1,300 kg to 2,000 kg per hectare.

In Mysore, ILTD introduced and popularised improved and exotic tobacco varieties. The productivity has gone up substantially from 1,000 kg to 1,500 kg.

What were the steps initiated by ILTD-ITC to improve the quality of tobacco?

ITC has been playing a pivotal role in introducing region-specific tobacco varieties. We have inculcated among farmers the measures to improve smoke quality in crop in NLS areas in Andhra.

They are able to produce flavourful tobacco by advancing plantation time. We have also come out with improved varieties and hybrids, thanks to CTRI collaboration.

All these radical varieties, which can give high yields with tremendous betterment in flavours, are under bulk trials. We have already achieved a significant success in this direction in Mysore. We improved filler tobacco types to the level of world-class neutral filler.

Does ITC have any special goal to take our tobacco to world standards in respect of flavours?

We have identified new soils in southern Maharashtra, which is suitable to produce flavourful tobacco. ITC agri scientists have taken up large-scale and intensive crop trials in these soils.

How about your market penetration strategies to give a new thrust to our tobacco exports?

Our company, Indian Tobacco Association (ITA) of traders and exporters, and the Tobacco Board have been striving to satisfy world customers with quality stuff at globally competitive prices. We must now compete with countries in the African continent (such as Tanzania and Uganda), and Southeast Asia, before grabbing a bigger share in the world market.

There's no other way. We must produce high quality tobacco at a low cost and offer it to international buyers at competitive prices.

Farmers apprehend that any increase in crop size would eat into their earnings. Is that correct?

If the crop size does not meet the requirements of domestic and global customers, discontinuity would set in trading engagements. This happened in the recent past. If it happens again, we will lose customers and their confidence.

For instance, all concerned with the tobacco sector should become alert to the fact that the current crop size is not in tune with the global tobacco requirements.

If the crop supply falls short, the customers are bound to go to other prospective countries, which can sufficiently meet their demand.

Moreover, our tobacco exports are increasing year after year, and any fall in crop size at this stage will be detrimental to tobacco farming and farmers.

International manufacturers concentrate on countries with a potential to increase crop size and supply it consistently. Increased demand will always fetch remunerative returns and stable prices for farmers.

We see tight restrictions on tobacco use every day. Under such circumstances, how do you visualise the future of Indian FCV tobacco and farmers, who produce it?

India produces 700 million kg tobacco. Restrictions under implementation cover 235 million kg of it. What is significant is that 60 per cent of FCV tobacco produced in our country is exported to other countries.

The government should keep this fact in mind and treat FCV tobacco on a par with other tobaccos. It should encourage cultivation of exportable varieties, which earn hefty foreign exchange and better the living standards of Indian farmers.