Tobacco growers in Andhra Pradesh press for higher crop size as export demand spikes

Farmers in Ongole, AP, demand higher quota for Rabi season due to record prices of ₹210/kg. Centre waived penalty on excess tobacco, considering export demand. 52.51 million kg sold at ₹210.11/kg, 56.85 million kg at ₹210.29/kg. Last year, 76 million kg sold at ₹172/kg. Global shortage of 400 million kg, all varieties of tobacco lapped up. Farmers replanted, gap filled to offset losses. Farmer leader cautions to prefer lesser crop size for gain.

Farmers in the traditional tobacco growing region in south coastal Andhra Pradesh have pitched for a higher quota during the coming Rabi season. The demand came after premium leaves fetched a record price of over ₹210 a kg during the ongoing e-auctions in Prakasam and Nellore districts.

The huge demand for the cured leaves globally has led to the market going northwards. Not satisfied with the crop size of 142 million kg fixed by the Tobacco Board, the farmers, through ruling party MPs, have requested the Union Commerce Ministry to increase the cultivation quota to 170 million kg, according to a group of farmers in Ongole. Acceding to the farmers’ plea, the Centre waived penalty on excess tobacco with registered growers.

‘’Officials from the Ministry are considering the demand of the farmers for a higher crop size in view of the export demand,’‘ said Ongole MP Magunta Srinivasulu Reddy, who was part of the MPs delegation.

Farmers coming under the auction platforms in the Southern Light Soil (SLS) region have so far marketed 52.51 million kg at an average price of ₹210.11 a kg whereas their counterparts in the Southern Black Soil (SBS) region got an average price of ₹210.29 a kg for the 56.85 million kg, according to a report compiled by the crop regulator.

In contrast, farmers had realised only an average price of ₹172 a kg for 76 million kg marketed during the previous year.

The fancy prices, even for the low-grade varieties, were due to a shortage of the crop to the tune of 400 million kg at global level, according to Indian Tobacco Association sources.