Tobacco growers in Prakasam district had hoped for a turnaround when Union Minister of State for Commerce Nirmala Sitharaman announced Rs. 2,000 per quintal as compensation for low-grade tobacco varieties.
The Tobacco Board is yet to issue guidelines for purchase of F10 and F 9 varieties of low-grade tobacco even after 10 days of her visit here. “Though there is demand for medium and bright-grade tobacco, low-grade varieties continue to face rejection,” said a farmer on the eve of YSRC chief Y.S. Jaganmohan Reddy’s visit to the district to drum up support for the ryots’ cause.
F-10 and F-9 grades, which account for majority of tobacco bales with farmers and used in non-filter cigarettes, do not find buyers, said former Tobacco Board member M. Bangarababu. “The government should offer compensation for F-8 grade also for farmers to cope with losses. The market will continue to be lacklustre if the Tobacco Board fails to intervene,” he said.
At the behest of the Union Minister, traders had agreed to purchase tobacco in the price band of Rs. 95 to Rs. 99 in July. However, farmers at the southern light soil (SLS) region auction platform got an average price of Rs. 89.57 per kg, marketing 43.49 million kg so far, SLS Regional Manager G. Ratnasagar said.
“Low-grade accounts for 12 million kg of the total 14 million kg left with us,” said Madala Ramanaiah, a farmers’ representative at Kandukur.
At the southern black soil (SBS) auction platforms, farmers got an average price of Rs. 91.77 kg, marketing so far 51.39 million kg, SBS regional manager G. Bhaskar Reddy said. Though the rate of rejections came down to 10 to 15 per cent from the earlier 30 to 35 per cent, big players did not show interest in greens and low-grade varieties. “With no sign of small-time players and speculators entering the market to buy low-grade tobacco, the Tobacco Board should come forward to buy the leftover tobacco after doing away with the penalty clause as a special case this year to mitigate the sufferings of growers,” Andhra Pradesh Rythu Sangam district secretary D. Gopinath added.
