Farmers in Andhra Pradesh happy as Tobacco Board gets more powers

ONGOLE: The Union government has recent directive that sales, name change, shifting of tobacco barns of any farmer should be approved only by the Tobacco Board has come as shot in the arm for the farmers.

This recent development will ease the hardships of the tobacco farmers in changing the name of the barn owner or shifting of the barn to other locations or sale of the barn among others. Earlier, the tobacco farmers had to apply for the Union Government’s approval and the entire process was lengthy and time consuming. But, with these recent orders, the Tobacco Board is empowered to approve the applications of the tobacco farmers to sell their barns or name change or shift the barn and the like. It will be easy for the farmers to approach the Board authorities on pursuing these issues. 

In this connection, the ministry gave nod to sell the additional (unauthorised) produce of the permitted tobacco crop of the farmers after completion of the ongoing regular tobacco auctions. To this end, the farmers have to pay Rs 2 per kg penalty up to 10 per cent on the total permitted production. And also collects 5 per cent of the total sold out quantity price. If the additional (unauthorised) stock quantity exceeds the 10 per cent of the total permitted quantity of production, another 5 per cent of the total sold stock will be collected. For the current season, the Tobacco Board is expecting around 10 per cent additional stocks on the overall permitted quantity that might come to auctions in this category. 

“As the tobacco farmers are suffering losses, many of them either want to quit tobacco cultivation or shift to alternative crops. In such circumstances, the recent Centre’s directive has come as a shot in the arm of the farmers,” M Srinivasa Rao, a tobacco farmer from Tangutur told The New Indian Express on Thursday.  On Thursday, a total of 715  out of total 4,062 tobacco bales were rejected in all five tobacco auction centres of the Tobacco Board Southern Black Soil (SBS) Region. Similarly, 812 out of 4,709 tobacco bales were rejected in the auction centres of the Tobacco Board-Southern Light Soils (SLS) limits.   

“Buyers are offering a good price for the bright and medium grade quality tobacco stocks and the average prices are more than the MSP. But for low grade tobacco, the buyers are not willing to offer a suitable price. We are trying to convince the buyers to take up the low grade tobacco for a suitable price,” SBS-Ongole regional manager Manjunath said. 

“Though the farmers are presenting low grades, the buyers are rejecting the stocks, resulting in serious financial troubles for the farmers,who are bringing the bales to the auction centres by spending money for transport. We have already requested the authorities to see that all the exporters and the purchase agents should attend the tobacco auctions and there should be healthy competition between them, which in turn, gives a good price to the farmers for their produce,” Tobacco Growers Cooperative Association President V Basivi Reddy said. He added, “But still a few companies are attending the auctions and obviously the ITC is a major purchaser at all auctions. We request the Board to intervene in this matter.”