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Tuesday, May 03, 2011
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Prices are not encouraging in the State
Auctions in Karnataka to end in a week
GUNTUR: Tobacco farmers in Andhra Pradesh are peeved at the continuing auctions of unauthorised crop in Karnataka whereas their production has almost hit a plateau at about 170 million kilos just below the authorised crop size (in Andhra Pradesh) of 174 million kilos.
The auctions in Andhra Pradesh are going on at a tardy pace this season with only 20 million kilos acquired till date largely due to low-key participation of traders in the auctions here.
The farmers are also worried that the prices are not encouraging in spite of the fact that there is no excess crop in the State.
Tobacco auctions in Karnataka are still going on affecting the traders' participation in Andhra Pradesh. Farmers of Karnataka have produced 130 million kilos as against the authorised crop size of 100 million kilos.
The excess crop is what is being auctioned now in Karnataka while farmers back home are virtually searching for buyers to lift their legitimate crop. This is the crux of the problem faced by farmers in Andhra Pradesh, who are bearing the brunt of the delay in auctions.
Tobacco Board chairman G. Kamala Vardhana Rao has told The Hindu that auctions in Karnataka will draw to a close in about a week and auctions in Andhra Pradesh will gain momentum.
The board is taking necessary steps to help tobacco farmers in both States and expected traders to respond positively to the situation. Penalties are being imposed on those producing more than the authorised crop size.
The demand for suspension of auctions in Karnataka is unreasonable as the farmers there are also dependent on the prospective returns on their investment.
There is a drop in production in Andhra Pradesh and the agitation in Prakasam district has a telling impact on auctions, according to him.
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