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K.R. Srivats

NEW DELHI, June 17

THE Central Government has authorised the Tobacco Board to admit the regular and registered traders and dealers of the board to purchase, at its auction platforms, the excess tobacco produced by the registered farmers in Andhra Pradesh.

The authorisation, which will be valid up to July 15 this year, comes with a stipulation that every registered grower should contribute an extra fee of Rs 2 per kg and a service charge of 5 per cent of the sale proceeds to the Tobacco Fund for the excess tobacco.

Official sources said the Centre has also relaxed the operations of provision of Section 10 of the Tobacco Board Act, 1975 in Andhra Pradesh for a period up to July 15 and permitted the sale of excess flue-cured Virginia (FCV) tobacco crop at the auction platforms authorised by the Tobacco Board.

The authorised crop size of FCV tobacco for Andhra Pradesh in the 2001-02 season is 98.93 million kg. The progressive sales up to June 13 at the Andhra Pradesh auction platforms stood at 74.71 mkg at an average price of Rs 36.02 per kg. Industry observers estimate the tobacco production in Andhra Pradesh during the 2001-02 season to be about 115 mkg.

Andhra Pradesh has about 44,500 farmers who are registered with the Tobacco Board. Tobacco production from Andhra Pradesh had touched 148.81 mkg during 1998-99 and 137.98 mkg during 1999-00. Andhra Pradesh had opted for a crop holiday for the 2000-01 season.

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