The Tobacco Board has pegged the crop size for Flue Cured Virginia (FCV) Tobacco, which is cultivated in Andhra Pradesh, at 120 million kg, which is 52 million kg less than that of the crop size in 2014-15.
“The Board has decided to peg the crop size keeping in view the gloomy global markets, carryover stocks, declining demand for tobacco in the domestic market and the growers’ demand for greater remunerative prices,” Tobacco Board Chairman Koothati Gopal said after the 140th board meeting held in Hyderabad.
The Board also resolved to form a committee in A.P to recommend an agreeable price range for 2015-16.
“We will deal with excess production sternly and limit it strictly to the crop size fixed so as to ensure fair and remunerative prices to growers,” Dr. Gopal added.
With global tobacco companies like Philip Morris, British American Tobacco and Japan Tobacco International, which buy 50 per cent of the FCV tobacco, moving to emerging markets in South Africa, Zimbabwe, Tanzania, exports have taken a hit. Tobacco and tobacco product exports during 2014-15 reached Rs. 5,613.64 crore as against Rs. 6,092.86 crore during 2013-14.
But, the Board has set an ambitious target of Rs. 7,000 crore for the next year, besides deciding to focus on Russia, Kazakhstan, Kyrgyzstan, Egypt, Tunisia and China to increase exports.
Board members Lalsinha Vadodia, MP; Gokaraju Gangaraju, MP; M.C. Luther, Joint Secretary (Finance), Ministry of Commerce & Industry and D. Damodar Reddy, Director (CTRI), Rajahmundry, attended the meeting.
ITA welcomes
Board’s decision
The Indian Tobacco Association (ITA) welcomed the Tobacco Board’s decision to peg the authorised crop size of FCV tobacco at 120 million kg. Board Honorary President Y. Ankamma Chowdary, who represented the ITA at the meeting, said: “The decision reflects the current situation in which the global and domestic demand for FCV Tobacco is on the vane.
