Financial Daily from THE HINDU group of publications
Thursday, Jun 20, 2002
Financial Daily from THE HINDU group of publications Thursday, Jun 20, 2002 |
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Agri-Biz & Commodities
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Tobacco Talks on tobacco crop size inconclusive again Our Bureau
GUNTUR, June 19 THE Tobacco Board which met in Hyderabad on Wednesday again failed to arrive at a conclusion on the crop size to be fixed for Andhra Pradesh for the 2002-2003 season. The decision was deferred for a second time. According to sources in the Tobacco Board here, the production committee of the board felt that unless the minimum guaranteed price was fixed, there was no point in finalising the crop size. Further, the trade body, the Indian Tobacco Association (ITA), tentatively indicated a crop size of 90 million kg for the State but the board was not content with it. The production committee members felt that each member of the ITA, each manufacturer and exporter, should clearly indicate their individual requirements and stick to it. It was not enough if the trade collectively indicated its requirement, as the farmers felt that the trade was not honouring its commitments. The minimum guaranteed price for each grade of tobacco would have to be fixed on the basis of the cost of cultivation plus 10 per cent margin, taking into account the rate of inflation as well, according to a resolution passed earlier by the board. Dr P. Dayachari, Tobacco Board Chairman, who presided over the meeting in Hyderabad, felt that this exercise would have to completed first. The tobacco auctions in Andhra Pradesh are still going on and till now 80 mkg of the crop has been sold and at least 30 more mkg would have to be sold. The average prices per kg are declining and as only low grades are to be marketed yet, it is feared that the average price per kg may slump to Rs 30 or so by the end of the season. Currently, it is hovering in the range of Rs. 36-38 or so per kg. Though there was some talk of market intervention by the Tobacco Board earlier, it is doubtful if the board would enter the market at this late hour.
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