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Online edition of India's National Newspaper Wednesday, November 21, 2001 |
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Southern States
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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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