Tobacco farmers and farm leaders from Karnataka and Andhra Pradesh have opposed the Centre’s plan to introduce contract farming in tobacco on the grounds that it will have adverse consequences on their livelihood.
Any move to bring contract farming into the tobacco sector would only aggravate the problems of Flue Cured Virginia (FCV) farmers who were battered by the economic losses caused by the COVID-19 pandemic.
Virginia Tobacco Growers Association, Federation of Karnataka Virginia Tobacco Growers Association, Kondapi Tobacco Growers Association, and Kaligiri FCV Tobacco Growers Association are opposed to contract farming in tobacco.
In Karnataka, FCV tobacco is grown mainly in four taluks of Mysuru district and some parts of Chamarajanagar, Hassan and Mandya districts.
Gadde Seshagiri Rao, ex-vice chairman, Tobacco Board, stated, “Contract farming is no match to our transparent auction system, which ensures fair pricing for FCV tobacco. In fact, this system has enabled even a small and marginal FCV tobacco farmer to realise a better price for their produce. Indian FCV tobacco farmers are the only set of growers in the world to have generated better returns on a year-on-year basis with very minimal fluctuations.”
Tobacco farmers allege that the multinationals, who have been witnessing tepid sales in global markets and are prohibited from investing in India, are trying to get a backdoor entry by pushing for contract farming. In Malawi, Zimbabwe and other countries, there is increased domestic pressure to do away with contract farming as growers were left at the mercy of traders.
Javare Gowda of Federation of Karnataka Virginia Tobacco Growers Association said, “FCV contract farming will take us to the pre-1984 era of exploitation, and negatively impact the Indian farming community. We must protect the existing auction system, which is reliable and supports even the smallest of farmers with the right price discovery mechanism thereby helping them to meet domestic and export market requirements. We must resist the efforts of foreign tobacco multinationals who are looking at India to revive their sales.”
FCV tobacco farmers indicated that if the government allows contract farming, tobacco growers would get a raw deal. They say it is wrong to believe that contract farming would work to the advantage of farmers just because tobacco buyers would give them farm inputs and first priority to sell their tobacco.
Exhorting the government to support FCV farmers in these difficult times, M. Subba Reddy, Virginia Tobacco Growers’ Association, said, “FCV tobacco farmers have braved the odds to grow their crop amidst the COVID-19 pandemic. Following disastrous economic losses due to lockdowns and delayed auctions, they are struggling to make ends meet, and avoid further losses. This is the time to extend all support to them to help them survive and not come up with an alternative system of contract farming, which will push them into uncertainty.”
Murali Babu, general secretary, Kondapi Tobacco Growers’ Association, stated, “FCV tobacco farming community is disappointed with the Tobacco Control Board’s silence on the government’s move to propose the idea of contract farming. We are particularly disturbed by the fact that the Board has chosen to maintain silence on the development despite knowing the likely detrimental effects of such a move on FCV tobacco farmers’ livelihood, which has been proven globally as well.”
