The crisis in tobacco market assumed gravity on Monday, as auctions were disrupted on six floors in Andhra Pradesh, as the farmers were upset over the high rate of rejections and the low prices being offered by the companies.
Auctions were disrupted at Ongole, Tanguturu, Kondepi, DC Palli, Kanigiri, Kaligiri and Jangareddigudem (2) floors as dissatisfied farmers boycotted the auctions.
So far roughly 11 million kg of tobacco has only been sold on the floors in AP at an average price of ₹135 per kg, and there in no active trade participation, allege farmers.
The authorised crop size in the State is 125 mkg.
According to Y. Sivaji, the representative of tobacco farmers who once organised crop holiday by the farmers in the State, it is “most unfortunate that the Union government does not have a clear and comprehensive policy on the issue.
As usual, the trade is playing foul. Showing the pictorial warning issue as a pretext, the major companies have almost withdrawn from the auction floors and the prices have plummeted. The farmer is left high and dry.”
He said the tobacco farmers in AP were willing to switch over to alternative crops provided the government facilitates the switch-over.
Sivaji said the Government should formulate a comprehensive policy to discourage tobacco production and consumption and take steps to enable farmers to go in for alternative crops.
Ch Seshaiah, President, Virginia Tobacco Growers’ Welfare Association, said the Centre should address the issue immediately and arrest the price fall.