The talk of an imminent second wave of COVID-19 has cast its shadow on the auctions of the Flue Cured Virginia (FCV) tobacco.
Major industry players have been shying away from the auctions that have begun on a sedate note in the second week of March.
As of April 6, 2021, tobacco weighing 8.26 million kg was marketed in the three regions of the Northern Light Soil (0.91 million kg), Southern Black Soil (3.55 million kg) and Southern Light Soil (3.81 million kg).
It was worse during the corresponding period in 2020, when about 4 million kg had been marketed before auctions were called off due to the lockdown.
The targeted quantity to be marketed for 2021 is 115 million kg.
What is worrying the farmers is the recalcitrant attitude of the major players, who are reluctant to take part in the auctions citing lack of good quality, uncertainty in exports and manufacturing activity.
If the trend continues, farmers producing the low and medium grades of tobacco will be worst affected.
Nearly, 45.7 million people (six million farmers, 20 million ancillary industry workers, four million grading labour, 8.5 million processing, manufacturing and export division workers, 7.2 million trading division workers) are dependent on the FCV tobacco cultivation.
In 2020, the Government of Andhra Pradesh had bailed out the farmers by pressing the AP Markfed to buy the low and medium grade varieties.
But, is it necessary for the government to intervene in the tobacco auctions time and again, while the major players, who sit on huge reserves, continue to turn a deaf ear to the pleas of the farmers?
This is a question that is in the minds of the farmer associations and organisations working for the welfare of the farmers.
‘FDI needed’
“What is needed is an effective intervention by the Tobacco Board with its headquarters in Guntur. The board can enter the auctions, which will bring a sense of buoyancy in the market. It has a trade wing that can anchor the auctions. It collects cess and penalties from the farmers, but is yet to effectively control the auctions. Besides, there is an urgent need to bring in Foreign Direct Investment in tobacco trade and industry. I cant understand why the Union Government is sitting on the recommendations made by the Joint Parliamentary Committee to this effect,” observes former MP and honorary president of the Virginia Tobacco Growers’ Association Y. Sivaji.
