The Tobacco Board has enhanced the cultivation quota for farmers in the traditional tobacco growing areas in Prakasam and Nellore districts by 8.63 million kg to 89.35 million kg in the 2022-23 cropping season.
However, the new quota for cultivation of flue-cured virginia (FCV) tobacco has come as a bit of a disappointment for the growers who have demanded an increase in crop size from 80.72 million kg to 107 million kg in the Southern Black Soil and Southern Light Soil regions.
Tobacco farming is now a rage in the two districts in the wake of record prices for various grades of tobacco. It is not just ‘bedroom bales’ that interested traders. Even low-grade varieties attracted traders following a favourable demand-supply situation in the international market during the 2021-22 season.
‘’We are in a compelling position to cut costs on the one hand and be competitive as we cater to the global market. This will be possible only with favourable economies of scale,” said a group of farmers coming under the Ongole-II auction platform. Farmers have demanded a per barn quota of 40 quintals. However, the crop regulator had fixed a quota of 35.50 quintals per barn in the SBS region and a slightly higher quota of 36.50 quintals per barn in the SLS region.
Individual farmers have been allowed to grow up to a maximum of 19 hectares in the SBS region and 29 hectares in the SLS region, according to Tobacco Board sources.
“We will have to incur additional expenses on curing,” rued a farmer B. Ramanjayaneyulu. Leaf production depended upon the vagaries of nature. Though the crop regulator allowed a crop size of 80.72 million kg last year, actual production fell short by 5.86 million kg as they were forced to grapple with unseasonal rains, explained another farmer V.V. Prasad.
The Tobacco Board, which shared the enhanced crop requirement projected by the Indian Tobacco Association among the four tobacco-growing regions, should ensure that the ITA members met their commitments fully at the time of marketing, said former Tobacco Board member P. Bhadri Reddy.
They wanted the Tobacco Board to ensure sale of ‘Padu gulla’, top-leaf, and bits and scrap of Virginia tobacco only via the auction platforms. These are currently being sold outside the auction platforms by farm workers.
Farmers are enthusiastic about growing the commercial crop thanks to a record price of ₹172.43 per kg realised for the 74.70 million kg marketed so far in the two regions during the auctions which have reached the fag-end. Auctions have been completed in all the platforms in the SLS region and only 0.92 million kg of the leaf had to be marketed in the SBS region. For the first time, low-grade varieties fetched a record price of over ₹150 per kg with exporters competing with domestic cigarette manufactures to lap up the leftover leaf with the farmers. Rent per barn for the upcoming season went up to ₹90,000 from ₹50,000 earlier. Similarly, the lease rent for land touched the ₹20,000-mark from the ₹15,000 per acre earlier as tenant farmers too had evinced interest in growing the crop.
Meanwhile, Tobacco Board member M. Subramanyeswara Reddy urged the farmers to stick to the crop size fixed by the Tobacco Board in their own interest and grow quality produce without pesticide residue to get better price for their produce in the market dominated by global players.
