Tobacco losing out in India

| October 10, 2017

Some farmers in India are exploring the possibility of moving from tobacco to alternative crops, according to a story in the latest issue of the BBM Bommidala Group newsletter.

Farmers in the traditional tobacco-growing areas of the Prakasam district of Andhra Pradesh are said to be exploring the possibility of switching from tobacco to crops such as Bengal gram.

Mechanization has made growing Bengal gram relatively easy and farmers are being attracted to this crop by what are described as ‘attractive’ prices.

The situation is such that the Indian Tobacco Association (ITA) is expecting a decline in tobacco yields in the district.

Meanwhile, the Tobacco Board of India and bankers are planning to assist tobacco growers with ‘farmer-friendly’ initiatives. The board has increased the crop size by two million kg to 86 million kg in the regions under the Southern Black Soil (SBS) and Southern Light Soil (SLS) auction platforms, and the leading bank in the district has increased the amount of loan assistance on offer from Rs350,000 per barn to Rs400,000 per barn.

However, the ITA believes that the combined crop in the SBS and SLS regions could be 70-75 million kg against the authorized crop size of 86 million kg.

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Category: Breaking News, Leaf, Markets, People

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