VIJAYAWADA: The Tobacco Board, at its board meeting in Hyderabad on Friday, decided to fix crop size for 2015-16 at 120 million kg for AP basing on the indents received from the Indian Tobacco Association as against 172 million kg fixed for 2014-15.
The board resolved to form a committee with trade and Indian Tobacco Association, grower leaders and board officials to recommend a price range for 2015-16 AP crops, which is agreeable to all the stakeholders in the industry. It also decided to deal with excessive production sternly and limit the production strictly to the crop size fixed so as to ensure fair and remunerative prices to the farmers, an official release said.
Further, the board reduced the size of the crop for 2015-16 after taking into consideration the gloomy situation in the world market, presence of carryover stocks, declining demand for tobacco in domestic markets, growers’ demands for remunerative prices for their produce.
On the export front, tobacco and tobacco products’ exports during 2014-15 season reached Rs 5,613 crore as against Rs 6,092 crore during 2013-14. The board resolved to work towards further improvement of value addition in the exports so as to reach a target of Rs 7,000 crore in the near future. It also decided to focus on potential markets like Russia, Kazakhstan, Kyrgyzstan, Egypt, Tunisia and China to increase exports.
The board appreciated its efforts to resolve the crisis in AP auctions and assuring a price of Rs 95 to 99 per kg to traditional tobacco growing region and Rs 127 to 113 per kg for bright and medium grades of northern lights soils with intervention of Union minister Nirmala Sitharam.
It noted that the prices in auction floors increased by Rs 5 to 10 per kg and auctions are going on smoothly with increased arrivals and sales.
As on July 8, 58 million kg of tobacco was marketed with an average price of Rs 107 per kg valued at Rs 620 crore out of 193 million kg produced this year.
About 135 million kg is the balance quantity to be marketed and the trade has assured to purchase this quantity before the end of September 2015.
Tobacco Board chairman Gopal Koothati presided over the meeting. MPs Lalsinha Vadodia and Gokaraju Gangaraju, Board members and MC Luther, joint secretary (Finance) for Ministry of Commerce and Industry were present.