The Tobacco Board and the Indian Tobacco Association (ITA) are planning to bring down the production limit for the next season, in the wake of agitation by tobacco growers for a remunerative price thi
The Tobacco Board and the Indian Tobacco Association (ITA) are planning to bring down the production limit for the next season, in the wake of agitation by tobacco growers for a remunerative price this season.
The Board has been allowing 170 million kg production in Andhra Pradesh for the past three seasons. Though it permitted 170 million kg this year, the production has come down to 160 million kg due to rain in December 2010. Even this has not helped support the price in the market as excess production is available in the international market. Brazil and Zimbabwe have increased their production, eating the export demand from India.
Moreover, the tobacco produced from southern black soils (SBS), northern black soils (NBS) and central black soils (CBS) is not preferred for cigarette manufacturing, which is why there is no demand for the product from these areas.
The crop in the SBS and southern light soils (SLS), spread over Prakasam and Nellore districts, is losing its quality due to weather conditions and also the agricultural practices. In fact, the problem between the growers and the traders in Prakasam district, where the auctions were closed in 11 platforms, created unrest in the market.
Board chairman G Kamalavardhana Rao and executive director C V Subba Rao, have been in contact with traders, particularly the representatives of ITA to resolve the dispute in the SLS and SBS areas.