Tobacco growers demand increase in quota

They got a better average price for their produce this year

Tobacco is back in favour among growers in the drought-prone areas in Prakasam and SPSR Nellore districts, as the growers realised a better average price during the truncated tobacco auctions this year.

Enthused by this, the growers in the two districts have demanded an increase in the quota for cultivation ahead of the Tobacco Board’s production policy meeting on August 16, to make good of the economies of scale to withstand the global competition.

Thanks to a favourable grade out-turn, tobacco growers got a better average price for their produce this year. They got stable prices for bright grade varieties and significant increase in the prices of medium and low grade varieties compared to the previous year, though the auctions this year were crippled by COVID-19 imposed break for three weeks during the peak marketing season and exporters not entering the market in a big way.

The average price realised this year for 68.3 million kg was ₹143.3 per kg when compared to ₹115.86 per kg for the 83.9 million kg sold in the previous year, as the bright grade varieties accounted for a majority of the crop this year when compared to low grade varieties dominating the grade out-turn in the previous year, according to Tobacco Board sources.

The drastic reduction in the per barn quota for the farmers last year had put paid to their hopes of taking advantage of the economies of scale, said a group of farmers in Ongole. The Tobacco Board at its meeting on Monday should allow at least 45 quintals per barn for each registered farmer, said a farmer Ramanjaneyulu from Ongole II auction platform.

The Central Tobacco Research Institute had recommended an optimum curing capacity of 55 to 60 quintals for the farmers to cultivate the export-oriented crop in a profitable manner, opined another farmer V.V. Prasad.

The crop regulator used to give an additional quota for the growers in the southern light soil(SLS) and Southern Black Soil(SBS) regions in view of the drought condition when compared to their counterparts in northern black soil with irrigation facility. This advantage was taken away during the last cropping season by the Tobacco Board for unknown reasons, explained farmer P. Bhadri Reddy.

The Tobacco Board should follow a policy of allowing more crop in arid regions and discouraging the cultivation of the crop in areas with better irrigation facility, argued a farmer from Kandukur T. Ramaniah.

The bright grade varieties accounting for 35 million kg fetched the farmers a price of ₹167.20 per kg on an average when compared to the 23.3 million kg sold during the previous year at ₹170.70 per kg. The 18.3 million kg of the medium grade varieties attracted buyers attracted the buyers at ₹43.80 per kg when compared to ₹131.50 per kg realised for the 21.7 kg of the same varieties sold in the previous year.

Despite the MARFED offloading the low grade varieties lifted last year to create market buoyancy this year, the farmers got a better average price of ₹86.50 per kg for the 14.9 million kg marketed. They got only ₹74.30 per kg on an average for the 38.9 milion kg in the previous year, the sources added.

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