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Centre has done little to support tobacco farmers: Minister
Centre has done little to support tobacco farmers: Minister

Time of India

time22 minutes ago

  • Business
  • Time of India

Centre has done little to support tobacco farmers: Minister

Mysuru: The Union govt earns over Rs 13,000 crore in tax revenue from tobacco cultivated in Andhra Pradesh and Karnataka, yet it has done little to support the farmers who grow it—especially during times of distress, said minister for animal husbandry and sericulture K Venkatesh. Speaking at the 25th anniversary celebration of the Tobacco Institute of India's Tobacco Farmers Awards, held here on Tuesday, Venkatesh, who represents Periyapatna where tobacco is a major commercial crop, emphasised the plight of tobacco farmers. "Due to heavy rain, many farmers are suffering losses. The manure they applied was washed away, forcing them to reapply it—adding to their expenses. It is the duty of Union govt and the Tobacco Board to step in during such times," he said. Venkatesh, himself a tobacco farmer for over 60 years, noted that while farmers struggle, tobacco-dependent industries continue to earn massive profits. "Most farmers are incurring losses. Yet, the companies that rely on tobacco are making huge gains," he added. Despite discussions on banning tobacco, farmers are unwilling to abandon the crop, citing a lack of viable alternatives. He also pointed out that nearly half of Karnataka's tobacco is produced in a single taluk—Periyapatna—and stressed that such a high-revenue crop deserves more govt attention. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dermatologista recomenda: simples truque elimina o fungo facilmente Acabe com o Fungo Undo Venkatesh cautioned farmers against growing a second tobacco crop in the same season, saying it often leads to greater losses. Mysore MP Yaduveer Wadiyar highlighted the need to reduce the high cost of tobacco production and urged for the adoption of modern technology. "Production costs are rising. Farmers need innovative methods to reduce expenses," he said. Wadiyar proposed an eco-friendly alternative to traditional firewood used in curing tobacco. "Currently, tobacco farmers use a lot of firewood. If they switch to lantana—a plant that is invasive and harmful to forests—it could help reduce environmental damage, while also cutting costs," he suggested. At the event, ten farmers from Karnataka were honoured across four categories. Sharad Tandan, director, TII, said India is the second largest tobacco producer in the world and the third largest producer of Flue Cured Virginia (FCV) tobacco, following China and Brazil. India is a leading leaf tobacco exporter in the world, exporting tobacco to more than 100 countries across the globe. "A significant challenge impacting the legal industry and the domestic tobacco growers is the large illegal cigarette trade. India is the fourth largest illicit cigarette market globally and results in an annual revenue loss of Rs 21,000 crore to the govt," added Tandan. Yashwanth Kumar Chidipothu, chairman of Tobacco Board, BC Srinivas, director (auctions), Tobacco Board, and S Ramakrishnan, principal scientist and head, CTRI Research Station, Hunsur, were present.

Tobacco market in Andhra Pradesh in crisis due to slump in global demand
Tobacco market in Andhra Pradesh in crisis due to slump in global demand

Time of India

time2 hours ago

  • Business
  • Time of India

Tobacco market in Andhra Pradesh in crisis due to slump in global demand

Vijayawada: Poor demand in the global markets has induced serious crisis in tobacco market in Andhra Pradesh. In fact, the tobacco growers themselves put the traders in advantageous position by producing almost 40 percent surplus crop than the authorized stock. Tired of too many ads? go ad free now Betting high on the prices fetched by the FCV (virginia) tobacco growers during the last season, hundreds of farmers swung into cultivation of black burley tobacco causing further crisis in the market. The state govt is virtually struggling to achieve balance between the growers' demands for high prices and the slow response from the traders to pick up stock. Virginia tobacco growers have been complaining about rejection of stocks in the auction platforms particularly in Ongole-I, Ongole-II and Vellampalli platforms in Prakasam district. In order to escape from the demands for high price, the traders are simply rejecting the stocks without offering any price. While the farmers are expecting a price of anywhere around Rs 300 per kg, the traders are ready to pick up the stock between Rs 220 and Rs 250 per kg. State govt held several rounds of discussions with the big exporters, cigarette manufacturing companies and requested them to pick up stocks to avoid further protests from the field. However, the situation did not ease as traders are still awaiting for export orders. CPI(M) state secretary V Srinivasa Rao demanded that the Centre must purchase stocks through state trading corporation (STC) or tobacco board. He criticized the state and Union govts for not responding to the tobacco growers' concerns. The tobacco board authorized a crop of 167 million kg for FCV during the 2024-25 crop season after taking feedback from the growers and traders. Tired of too many ads? go ad free now Sensing trouble that farmers might go for additional crop, board chairman Yaswanth Kumar Chidipothu himself went around the tobacco growing districts and appealed to farmers to stick to the authorized stock. However, several farmers went ahead with the additional crop and the production touched almost 240 million kg, which is nearly 70mkg higher than the authorized crop size. Taking advantage of the situation, exporters and traders deliberately slowed down the purchase apparently to exert pressure on the growers. The growers too did not realise the situation in the initial weeks and sticked to their demand for a price above Rs 300 per kg. The stalemate led to almost no purchase situation in the auction platforms. After nearly 70 days of launching the auctions, just 52 mkg of stock was purchased, of the total expected production of 240 million kg. The growers are worried that it might take at least 4 to 5 months to pick up the authorized crop and another two months to pick up surplus stock. This means that auctions might not be going to be completed any time before Nov. Even as the FCV growers struggle to overcome the crisis, the cultivation of about 80 mkg of black burley, which is just a mixing stock, has deepened the crisis. While the white burley was almost picked up by the traders as per the bond, the black burley was left unattended.

Tobacco export reaches all-time high of ₹16,000 crore during 2024-25, says TII
Tobacco export reaches all-time high of ₹16,000 crore during 2024-25, says TII

The Hindu

time10 hours ago

  • Business
  • The Hindu

Tobacco export reaches all-time high of ₹16,000 crore during 2024-25, says TII

Tobacco Institute of India (TII) said export of tobacco and tobacco products has reached an all-time high of over ₹16,000 crore during 2024-25, said director of TII Sharad Tandan at the Silver Jubilee of the TII Tobacco Farmers' awards held in Mysuru on Tuesday. A total of 10 farmers from Karnataka were honoured on the occasion for demonstrating benefits of modern farming practices. Established in 1999, the TII Tobacco Farmers' awards seek to encourage the farming community to adopt modern, sustainable, and innovative farming practices that would help improve yields, crop variety, and make Indian tobacco competitive in the global market. Mr. Tandan said there was a huge potential for growth in Indian tobacco exports and urged the government to provide export incentives similar to other tobacco exporting countries. 'This would improve the price competitiveness of Indian tobacco in the global market and help us tap the export potential, benefitting domestic farmers', he said. Pointing to the socio-economic contribution of tobacco sector, which provides livelihood to 4.6 crore people in India, Mr. Tandan said India, which is only the third largest producer of Flue Cured Virginia (FCV) tobacco in the world following China and Brazil, exports tobacco to more than 100 countries. The 'extremely high' cigarette taxation in the country was driving the illegal cigarette trade, he said. Illicit cigarettes are estimated to account for a third of the cigarette volumes in the country, which means every fourth cigarette sold in the country is illicit,' he said. 'This makes India the fourth largest illicit cigarette market globally and results in an annual revenue loss of ₹21,000 crores to the government,' Mr. Tandan said. He said whenever taxes have gone up, the share of illicit cigarette trade also increases and that smuggled cigarettes do not use domestic tobacco, leading to a drop in demand. The recipients of awards included Vikram Raj Urs under the Lifetime Achievement Category; Javare Gowda, K.M. Raju, Halamma, and K.M. Mallesh under Best Farmers' category; Kemparaju C. and Krishne Gowda K.C. under Sustainability category; and Chandre Gowda C., Kamalamma, and Chandappa under Recognition awards category. Minister for Animal Husbandry and Sericulture K. Venkatesh, Mysuru MP Yaduveer Krishnadatta Chamaraja Wadiyar, chairman of Tobacco Board Yashwanth Kumar Chidipothu, director (Auctions) of Tobacco Board B.C. Srinivas, and principal scientist, CTRI Research Station, Hunsur, S. Ramakrishnan were present.

NIRCA partners with Hyderabad firm to test electric hot air chamber for tobacco curing
NIRCA partners with Hyderabad firm to test electric hot air chamber for tobacco curing

The Hindu

time26-05-2025

  • Business
  • The Hindu

NIRCA partners with Hyderabad firm to test electric hot air chamber for tobacco curing

The National Institute for Research on Commercial Agriculture (NIRCA) and Hyderabad-based firm Owl Techno on Monday signed a Memorandum of Understanding to test and advance the 'Electric hot air chamber' for curing Flue-Cured Virginia (FCV) tobacco. NIRCA Director M. Sheshu Madhav said: 'The initiative will focus on designing, evaluating, facilitating, and promoting electric hot air pump for curing FCV tobacco green leaf.'

Ensure no tobacco farmer incurs loss: CM Chandrababu Naidu
Ensure no tobacco farmer incurs loss: CM Chandrababu Naidu

New Indian Express

time17-05-2025

  • Business
  • New Indian Express

Ensure no tobacco farmer incurs loss: CM Chandrababu Naidu

VIJAYAWADA: Chief Minister N Chandrababu Naidu has taken a firm stand to protect tobacco farmers from losses amid a sharp decline in prices. During a high-level review meeting held at his Undavalli residence on Friday, he issued stringent directions to officials to ensure the immediate procurement of tobacco at fair prices. He emphasised that tobacco farmers should not suffer losses under any circumstances, and warned that any exploitation will attract severe consequences, underscoring his commitment to safeguarding the interests of both farmers and industries. He expressed deep concern over the plummeting tobacco prices, which has sparked unrest among farmers. He made it clear that the government's reputation should not be tarnished due to procurement delays or unfair practices. He set an ambitious target for companies like GPI and ITC to procure 20 million kg of HD Burley tobacco at Rs 12,500 per quintal, based on quality. To enforce accountability, he directed the Agriculture Department to monitor daily purchases through a dedicated control room and WhatsApp group, with progress reports for every two days. Naidu stressed that no tobacco stocks should remain unsold, whether stored at farmers' houses or fields. A comprehensive procurement report, detailing tobacco quantities and prices, has been sought by Monday. The Chief Minister attributed the crisis to an unprecedented yield of 450 million kg of tobacco from 1,90,456 hectares in 2024-25 season, driven by farmers shifting to tobacco cultivation due to its high productivity. This overproduction, particularly of FCV, White Burley, and HD Burley varieties, has led to a glut, exacerbating price slump, he explained.

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