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Tobacco farmers in Andhra Pradesh are set to benefit after crop yields in Brazil, Zimbabwe and Indonesia declined due to droughts and untimely rainfall.
Auction prices in Andhra have surged to near-record levels and are expected to rise further in the coming weeks. Prices range between Rs 280 and Rs 290 per kg and are predicted to surpass Rs 300 per kg, marking a 30 per cent increase from farmers' initial expectations, according to a report in the Times of India (TOI).
The surge in auction prices has been driven by the entry of small-scale players offering competitive bids. Despite initial concerns about challenges arising from production exceeding the Indian Tobacco Board's target of 140 million kg, Andhra Pradesh farmers stand to gain. The board estimates total production will reach 160-170 million kg, the report said.
Trade analysts attributed the price increase to crop damage in Brazil and Zimbabwe.
Brazil's production fell to 440 million kg from an estimated 550 million kg, while Zimbabwe's crop decreased to approximately 245 million kg from an expected 300 million kg. Meanwhile, drought conditions in Indonesia, another tobacco-producing country, resulted in crop failures.
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China, another significant producer, has imposed limitations on tobacco exports to protect its domestic cigarette industry in response to reports of global stock shortages. This action has fuelled price increases in tobacco-producing nations, as exporters and cigarette manufacturers rush to secure supplies.
The news report quoted a tobacco exporter as saying that the disparity between demand and production is expected to uphold price escalations for another year. “This is likely to benefit Indian growers,” he said.
Oral cavity cancer
According to a report by global cancer observatory Globocan, by 2040, India is projected to witness a significant increase in cancer cases, reaching 2.1 million. Oral cavity cancer stands out as the most prevalent form among all cancer cases, with India boasting the highest number of such patients globally. Tobacco consumption remains a primary factor driving these statistics.
Around 80-90 per cent of individuals diagnosed with oral cancer have been observed to consume tobacco in various forms, including smoking or chewing. The lifestyle prevalent in specific areas of the country, particularly in the northern regions, significantly contributes to this issue. In these regions, tobacco smoking and chewing are prevalent practices, serving as major contributors to head and neck cancer, according to the Globocan report.
