Farmers in Kanigiri burnt a few bales of tobacco and blocked the arterial Kangiri-Ongole State Highway on Saturday in protest against fall in prices of their produce in the wake of coronavirus-induced economic downturn.
Upset with the traders rejecting a majority of the over 600 bales brought by them for e-auctions, a group of restive farmers consigned to flames a couple of bales after stalling the auctions.
Police personnel led by Sub-Inspector G. Sivanarayana persuaded the farmers to relent and restored vehicular traffic after an hour-long protest.
The farmers could not sell more than 80% of their produce after curing as more than 45 days were lost due to the lockdown. Their hopes of clearing the stocks when the lockdown was eased in a staggered manner outside the containment zones were dashed as the traders drove down the prices, complained Kanigiri Tobacco Growers’ Welfare Association president K. Venkateswara Reddy. “We will have no option but to stall the auctions indefinitely if the Union and State governments do not come to out rescue,” he said.
The price of F-2 grade variety, which used to fetch more than ₹170 per kg prior to the lockdown, fell to ₹150 now, explained YSRCP Farmers’ Wing president Mareddy Subba Reddy.
Traders were offering only ₹110 per kg for the medium grade varieties and ₹80 per kg for low grade varieties.
Exporters stay away
Exporters, who had given indents at the time of fixation of crop size, were not seen in the market now, and contend that they had not got confirmed orders from the overseas buyers.
On an average, the prices for various grades of tobacco fell by about 30% after the lockdown was relaxed in the 12 auction platforms coming under the Southern Light Soil (SLS) and Southern Black Soil (SBS) regions with an estimated production of about 85 million kg, he said.
“Farmers will be forced to incur a loss of about ₹3 lakh per barn if the depressed market condition continues for the export-oriented crop,” he feared.