Tobacco crop reductions

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India

The Tobacco Board of India is set to reduce the crop size in Andhra Pradesh for 2011-2012 because of lower international export orders.
Some say that the Board could fix the crop size at 160 million kg as opposed to last year’s 170 million kg last year, since the production committee of the Tobacco Board, which met in August, had recommended a reduction of 5% compared to last year’s crop size.

However, the traders’ organization, Indian Tobacco Association (ITA), recommended the crop be reduced to 120 million kg – a move that was rejected by the Tobacco Board which prefers a more gradual reduction.
Meanwhile, some 715,000 kg of flue cured Virginia tobacco have been marketed at auction in Karnataka. Bright grades comprised 57.99% and traded at an average price of Rs122.79 (US$2.5) per kg. Medium grades comprised 38.42% and traded at an average price of Rs112.60 per kg and Low grades comprised the rest and traded at an average price of Rs71.59 (US$ 1.45) per kg.
Still, some farmers are no longer enthusiastic about cultivating the crop: over 1,200 tobacco growers from Keesara submitted a petition to the board chairman to allow them to sell their licenses, so that they could switch to alternative crops, a move which could put the Tobacco Board in a tight spot.

Quarter 1, 2012

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