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Wednesday, November 21, 2001

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Tobacco growers switch over to other cash crops

By Our Special Correspondent

VIJAYAWADA, NOV 20. Tobacco growers in Andhra Pradesh are closely watching the market in Karnataka where farmers are facing problems in disposing of their produce at a remunerative price this year.

Farmers in Karnataka produced 60 million kilograms of tobacco this year as against 34 million kg authoirsed by the Tobacco Board. They could sell 17 million kg till now at an average price of Rs. 37 per kg as against Rs. 54 obtained last year. The traders and exporters are conspicuous by their absence at a majority of the platforms. Only two or three platforms are running out of the total of seven platforms opened this year in Karnataka.

The sluggish market in Karnataka has had its impact on Andhra farmers who are thinking twice before planting tobacco in the current season. They planted the cash crop on only 59,000 hectares till now even though the Tobacco Board has permitted the crop on 90,000 hectares this year. The area may not go beyond 70,000 hectares, informed sources said. It was perhaps for the first time that the farmers raised the crop on less area than permitted by the Board.

Following crop holiday observed in Andhra Pradesh, tobacco growers switched over to alternative crops like pulses, maize, sugarcane, medicinal plants etc. As they found the alternative crops beneficial, they are reluctant to come back to tobacco. They notice that more and more people either give up or reduce their smoking habit due to increased health consciousness on the one hand and proposed legislation banning smoking in public places on the other.

The sale of cigarettes declined by 16 per cent and the cigarette manufacturers are holding one lakh tonnes of tobacco stocks. The potential for export of tobacco was also declining. All these factors made Andhra farmers to reduce the area of cultivation under tobacco drastically and they may not produce the authorised 98 million kg this year.

In marked contrast, the Karnataka farmers refused to observe crop holiday last year on the ground that they produced better quality tobacco and faced no marketing problems. They did get benefit last year because there was no crop in Andhra Pradesh and traders purchased their crop offering higher price.

The Chief Minister Mr. S. M. Krishna had warned them not to expect the same bounty every year and restrict their production. They ignored his appeal, produced more and landed themselves in trouble now. The Karnataka Government has deputed a team of six MLAs to Delhi to prevail upon the Union Commerce Minister Mr. Murasoli Maran to bail out the tobacco growers.

In this context, Dr. Y. Sivaji, former MP and president of Virginia Tobacco Growers Association, appealed to the Karnataka farmers to realise the changing market conditions and restrict production just to meet the demand so that they can get remunerative price. He stressed the need for unity among tobacco growers in Andhra and Karnataka to get a better deal from the traders and exporters.

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