VIJAYAWADA: Tobacco farmers boycotted auction at the Keesara platform near Nandigama in Krishna district and launched a relay hunger strike demanding remunerative price for their produce on Wednesday. For the past few days, farmers at the auction platform have been stalling the sale of tobacco to register their protest against the fixing of a `ceiling price' by buyers.

Farmers boycotted auction and launched a relay hunger strike when negotiations carried out by a delegation of the Virginia Tobacco Growers Association of India with the buyers failed. The agitating farmers announced that they would launch an indefinite hunger strike if the buyers, who, they alleged, were influenced by a leading cigarette manufacturer, did not increase the price by April 20.

Virginia Tobacco Growers Association of India honorary president and former Rajya Sabha member Yelamanchili Sivaji and general secretary T.V. Ramakrishna, who visited the auction platform, said at a press conference that auction was not being conducted at the platform in the true sense of the word because of `monopsony' (many sellers but only one buyer). A cigarette manufacturing company, which always purchased over 60 per cent of the leaf tobacco, called the shots and fixed the `ceiling price' with the rest of the small buyers not daring to cross the line, they maintained.

Dr. Sivaji said that tobacco farmers had boycotted auction at the Jangareddigudem platform in West Godavari district too on Wednesday for the same reason.

The tobacco growers association would try and resolve the problem temporarily by roping in the Tobacco Board. But the only permanent solution available to the problem was allowing foreign firms to the auction platforms.

He pointed out that the tobacco trade in the international market was controlled by a handful of multinational cigarette and leaf merchant companies, which sourced their requirements only from the countries where they had investment interests.

These companies did not have any investment interest in India and were, therefore, giving it last preference.

Disadvantages

Dr. Sivaji opined that the presence of major multinational companies in cigarette manufacturing, processing and export of tobacco and more liberalisation could help improve the marketing prospects of Indian tobacco.

Tobacco farmers, who were facing the disadvantage of small holdings, increasing costs of cultivation, unremunerative prices, unstable primary market and exploitative monopsonic trade practices were badly in need of opening the auction platforms to foreign companies.

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