Tobacco growers are opposing any move to reduce the crop size for the coming season. They met Tobacco Board executive director Ch Subba Rao in the light of the Indian Tobacco Association (ITA) sending a proposal to the board suggesting cut in the crop size.
The ITA had recently written to the board to reduce the crop size to 121.55 million kg for the 2011-12 season as against the 165 million kg permitted for 2010-11. ITA president Bellam Kotaiah informed the board that the tobacco prices in the international market had declined forcing the ITA to bring down the prices and slash the purchase volume.
The growers have organised a series of protests from July 2 and even stopped auctions as they were offered the lowest price. In the southern light soils (SLS), the prices have come down to Rs 110 a kg from the farmers’ demand of Rs 120 a kg.
The farmers said the ITA had in the past led a delegation of the tobacco growers to the Prime Minister seeking expansion of the crop size. They had also requested the board to intervene and purchase tobacco giving competitive price, which could not materialise for this season.
Meanwhile, former MP and tobacco farmers’ leader Yalamanchili Sivaji said, “the board cannot succumb to the pressures of the ITA and impose restrictions on the growers.”
He said the board should give compensation to the growers if it wanted to bring down the crop size. He also asked the board to lift restrictions on the crop size and trade allowing the growers to sell their product to any trader who offered the best price. “Let the market be opened to the growers like the other products and let there be no restrictions on the grower,” he said.
With the growers insisting on minimum guarantee price (MGP) of Rs 120 a kg on one side and the ITA offering Rs 90-105 a kg with an indent of 121.55 million kg for the season, the board is finding the going tough.
Subba Rao said the issue would be discussed in the board before finalising the crop size for the season.
