The Hindu : Andhra Pradesh News : Tobacco Board to act tough

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Wednesday, Oct 08, 2008
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Andhra Pradesh

Andhra Pradesh

Tobacco Board to act tough

Special Correspondent

Ryots growing more FCV variety than permitted to be penalised

GUNTUR: The Tobacco Board has decided to re-impose penalty for producing more of Flue-Cured Virginia Tobacco than authorised on each grower in Andhra Pradesh and Karnataka.

A day after increasing the total authorised quantity of tobacco growing in the State by 12 million kg, Tobacco Board Chairman J. Suresh Babu said that the Board would write to the Ministry of Commerce to allow them to re-impose penalty of Rs. 2 per kg and 15 per cent of sale proceeds.

“We literally froze the total quantum produced and sold it on auction platforms in the State last season, which was 172 million kg, and this was also done to remove some regional inequalities that existed in the quantum authorised for the region,” he said.

Per barn quota fixed

A number of barns lay idle due to lack of authorised area last season in the black soil regions, and this was kept in mind while increasing the quantum to be allowed.

In the southern black soil (SBS) and central black soil (CBS) regions, per barn quota has been increased from 35 quintals to 40 quintals and 25 quintals to 35 quintals and a similar quota (35 quintals per barn) has been fixed for northern black soils also.

The SBS and CBS had together produced only 9.5 million kg, but for the next season, it has been increased to 16 million kg.

Exports

The northern and southern light soils regions have been allocated 43 million kg each, the quantum they auctioned during the last concluded season.

“No new area will come under tobacco cultivation, the but existing ones will get stabilised as Guntur and Bhadrachalam regions have totally stopped producing tobacco,” Mr. Suresh Babu remarked.

The exports have crossed 300 million kg in the first half of the financial year, which is quite encouraging, and the tobacco in Karnataka is also commanding Rs.126 per kg, which gives enough strength to all stakeholders – traders and growers -- to go for higher quota.

The Virginia Tobacco Growers’ Association president Yelamanchili Sivaji, however, opines that penalties should be stricter and this quantum is ridiculous with tobacco price going up from Rs.46 a kg to Rs.126 a kg.

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