Faced with uncertainty over Flue Cured Virginia Tobacco exports since the outbreak of COVID-19 and lack of support from trade, the Tobacco Board has drastically reduced the annual crop size to 115 million kg this year.
The decision to reduce the crop size by 21 million kg was taken at the 152nd special board meeting held at Tobacco Board’s head office here on Monday through video-conference.
Presiding over the meeting, board Chairman Y. Raghunadha Babu, said the decision was taken in the interest of the farmers.
‘Traders backed out’
The tobacco sector is in a state of crisis and since the traders have not raised the indent beyond 115 million kg, the board was forced to reduce the crop size, the lowest in a decade, he said.
Sources said the traders gave an initial indent of 113.5 million kg and later revised it to 115 million kg. This could mean a severe blow for many farmers in the SLS/SBS areas in Prakasam district.
Even in the year 2020, the traders refused to bail out the farmers by offering better prices for low and medium grade varieties, forcing the government of Andhra Pradesh to intervene and procure the produce directly from the farmers.
Chief Minister Y.S Jagan Mohan Reddy had pressed Markfed to procure tobacco. Sources in the board said the government is now considering controlling the auctions and put pressure on trade to bail out the farmers. “Leading tobacco firms have profited immensely and have forayed into consumer products. Their apathy at time of distress is appalling and we will soon look into this,’’ said a CMO official.
BJP MP Bandi Sanjay Kumar, Special Chief Secretary Poonam Malakondaiah, ED R Muthuraj, Director, Department of Ccommerce, Neetika Bansal, and traders were present.
