Farmers in tradtional tobacco-growing areas in Prakasam and SPSR Nellore districts on Thusday urged the Tobacco Board to ensure offtake of low grade varieties by domestic cigarette manufacturers.
Taking stock of the situation arising out of Markfed’s market intervention in the last 15 days, former Tobacco Board member P. Bhadri Reddy said the cigarette manufacturers were not so active in the market after the entry of Markfed leaving the exporters to dictate prices for low grade varieties, which accounted for the majority of the crop this year in view of adverse climatic conditions.
As a result, the expected competition among the cigarette manufacturers and exporters in picking up the low grade varieties had not materialised, he said after a meeting of farmer leaders from auction platforms in the Southern Black Soil (SBS) and Southern Light Soil (SLS) regions.
The prices fixed by the Markfed for various grades had not resulted in higher price realisation for the produce after 93 days of trading, YSR Congress Party Prakasam district farmers’ wing President Mareddy Subba Reddy lamented and wanted Markfed to purchase the produce at a remunerative price even if it meant losses during the market intervention operation as promised by Chief Minister Y.S. Jagan Mohan Reddy. They wanted Markfed to purchase non-grade tobacco at not less than ₹ 80 per kg and other low grade varieties at ₹100 per kg.
Crop holiday
Farmers have so far marketed over 42 million kg of tobacco and are left with another 48 million kg as the lockdown came during the peak of the marketing season.
“We will have no option but to press for drastic reduction in the crop size or even press for crop holiday during the next cropping season if the buyers do not come forward,” said farmers welfare association president at the Ongole II auction platform V.V. Prasad.
They wanted the Tobacco Board to facilitate contract farming in Virginia tobacco akin to the arrangement entered into by cigarette manufacturers with farmers cultivating white burley tobacco.
