For the governments, it may be to reduce tobacco production due to health considerations, but for Indian growers, it is a dream come true. They are rewarded with $2 per kg price in the just concluded trading session 2007-08.
?The average price per kg of tobacco was over Rs 85, as against Rs 47 per kg in the previous season. We have achieved the dream price,? Y Shivaji, a farmer leader, said. The level of tobacco production has fallen in the competing countries ? Brazil and Zimbabwe ? and maybe this is the reason for increased demand of Indian tobacco, he opined.
?It is a benchmark year for the tobacco trade in the state, as exports have increased by 33% over the previous year at $503 million as against the target of $380 million,? J Suresh Babu, chairman, Tobacco Board told FE. Even the domestic market is firm thus benefiting the farmers and traders alike, he added.
About 165 million kgs have been sold during the trading season ending June 2008, which is more-are-less same as the authorised crop size for the year 2007-08.
Following the government?s plan to reduce the product by 50% by 2020, the Tobacco Board is counseling the farmers to limit the area of production. ?In fact, we are planning to come out with a financial package of Rs 5 lakh to each of closed barn,? Babu said. The government has in-principle approved the proposal, he added.