Lok Sabha Question No. 12 (UNSTARRED), answered on 2017-07-17
Subject: Tobacco Production
Ministry: COMMERCE AND INDUSTRY
Asked by: YERRAM VENKATA SUBBAREDDY

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 12 TO BE ANSWERED ON 17 th  JULY, 2017

## TOBACCO PRODUCTION

## 12. SHRI Y.V. SUBBA REDDY:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the details of the permission given by the Tobacco Board for production of tobacco in  the  last  three  seasons  and  the  current  season,  season-wise  and  districtwise,  in Andhra Pradesh (AP) along with the total production of tobacco by farmers during the said period;
- (b) whether it is true that Tobacco Board started procuring tobacco from 15th March of this year and if so, the details thereof;
- (c) whether the rate of tobacco has been brought down by traders and other procuring agencies  which  results  in  great  loss  to  tobacco  farmers  in  Prakasam  and  Nellore districts of AP and if so, the details thereof and the reasons therefor; and
- (d) whether  any  requests  have  been  made  for  intervention  and  purchase  of  low  and medium grade tobacco leaves by giving farmers a better price and if so, the action taken by the Government in this regard so far?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

## (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a):    The  details  of  the  permission  given  by  the  Tobacco  Board  for  production  of  tobacco  in  the season-wise and district -wise, in Andhra Pradesh (AP) along with the total production of tobacco by farmers during 2013-14, 2014-15, 2015-16 and 2016-17 (current season) are as under:-

(Quantity in million kg)

| Name of the District       | 2013-14         | 2013-14    | 2014-15                                 | 2014-15                                 | 2015-16                                 | 2015-16                                 | 2016-17 (current season)   | 2016-17 (current season)   |
|----------------------------|-----------------|------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|----------------------------|----------------------------|
| Name of the District       | Crop size fixed | Production | Crop size fixed                         | Productio n                             | Crop size fixed                         | Production                              | Crop size fixed            | Producti on*               |
| West Godavari              | 56.426          | 64.050     | 56.897                                  | 59.720                                  | 32.564                                  | 36.684                                  | 38.887                     | 42.921                     |
| East Godavari              | 6.191           | 5.200      | 6.139                                   | 5.330                                   | 3.522                                   | 3.373                                   | 4.592                      | 3.630                      |
| Khammam                    | 3.276           | 3.516      | 3.366                                   | 3.240                                   | 1.776                                   | 2.040                                   | 2.355                      | 2.202                      |
| Vijayanagaram              | 0.018           | 0.020      | 0.017                                   | 0.010                                   | 0.005                                   | 0.008                                   | 0.007                      | 0.009                      |
| Rayagada(Odisha)           | 0.299           | 0.270      | 0.281                                   | 0.250                                   | 0.133                                   | 0.135                                   | 0.159                      | 0.156                      |
| Krishna                    | 0.520           | 0.000      | FCV Tobacco cultivation has been closed | FCV Tobacco cultivation has been closed | FCV Tobacco cultivation has been closed | FCV Tobacco cultivation has been closed | -                          | -                          |
| Guntur                     | 1.642           | 1.130      | 1.688                                   | 1.120                                   | 1.017                                   | 0.977                                   | 1.056                      | 0.500                      |
| Prakasam                   | 88.978          | 123.984    | 89.222                                  | 104.670                                 | 69.763                                  | 65.523                                  | 71.704                     | 48.312                     |
| Sri Pottisriramulu Nellore | 14.650          | 15.760     | 14.390                                  | 15.710                                  | 11.220                                  | 9.500                                   | 11.240                     | 6.270                      |
| Total                      | 172.00          | 213.930    | 172.00                                  | 190.050                                 | 120.00                                  | 118.240                                 | 130.00                     | 104.00                     |

(*Estimated; During 2016-17 Andhra Pradesh Auctions are in progress.  Source: (Tobacco Board)

- (b): Tobacco Board has commenced the auctions for sale of 2016-17 FCV tobacco in Andhra Pradesh in two phases.    In the first phase, auctions were commenced at  17 Auction Platforms on 15/03/2017 and in second phase auctions  commenced at one Auction Platform on 06/04/2017.
- (c) to (d):  No Madam. Considering the average prices being realized during current auction season in Andhra Pradesh, the medium grade tobacco is being marketed at a higher rate of Rs.14/- to Rs.24/per kg and low grade tobacco  at Rs.10/- per kg  than the last year. Soil region wise average prices realized for bright, medium and low grades during current season and last year are given as under:

| Name of the district   | Soil Region                | Bright grades   | Bright grades   | Medium grades   | Medium grades   | Low grades   | Low grades   | Total grades   | Total grades   |
|------------------------|----------------------------|-----------------|-----------------|-----------------|-----------------|--------------|--------------|----------------|----------------|
| Name of the district   | Soil Region                | 2016 (final)    | 2017*           | 2016 (final)    | 2017*           | 2016 (final) | 2017*        | 2016 (final)   | 2017*          |
| East Godavari          | Northern Black Soil        | 122.24 156.22   | 96.16           |                 | 114.80          | 62.35        | 75.88        | 99.28          | 135.91         |
| West Godavari          | Northern Light Soil 157.59 | 161.56          | 129.95          |                 | 140.11          | 86.49        | 118.23       | 132.53         | 151.55         |
| Prakasam               | Southern Light Soil 136.09 | 161.89          |                 | 114.99          | 139.36          | 68.73        | 79.27        | 109.12         | 126.63         |
| & Nellore              | Southern Black 137.88      | 162.06          |                 | 112.72          | 127.26          | 73.56        | 83.69        | 107.35         | 131.42         |
| TOTAL                  | TOTAL                      | 143.59          | 161.54          | 120.48          | 135.82          | 74.74        | 84.08        | 116.09         | 136.94         |

## 2017* as on 06/07/2017

As  could  be  seen  from  the  above  table,  the  prices  realized  all  the  bright,  medium  and  low  grade tobaccos are higher than the last year prices for these grades of tobacco.

However, this Department had received a representation from one of the public representatives for intervention  and  purchase  of  low  and  medium  grade  of  tobacco  leaves  by  giving  farmers  a  better price.  In this connection, it is stated that  though the average prices being realized are higher than the last year prices, farmers under Prakasam and Nellore districts had requested to the Tobacco Board for  better  prices  for  medium  and  low  grades  to  reduce  the  losses  which  may  arise  due  to  lower productivity  on  account  of  drought  conditions/  adversity  of  climate,  Orobanche  (a  root  parasite  in Prakasam and Nellore districts) incidence. To address the concern of tobacco farmers, the Tobacco Board coordinated with M/s ITC Ltd and other trade members to procure medium and low grades of tobacco at  a remunerative price.   The companies have responded positively and the volumes are picking  up.    Out  of  the  total  estimated  production  of  104  million  kg  in  the  current  season,    as  on 06/07/2017, a quantity of 64.51 million kg was marketed and the average price of Rs.136.94 per kg which is higher by Rs.14/- per kg for the corresponding volume marketed during the last year.

No  such  requests  for  intervention  and  purchase  of  low  and  medium  grade  tea  leaves  have  been received.

***