Jump to full article: Business Standard (in), 2009-09-29
Author: Kalpesh Damor / Ahmedabad
Intro: It is not going to be easy for India to meet its commitment to the World Health Organisation (WHO) to bring down tobacco production by 50 per cent in the next one decade. Tobacco output in India is estimated to be more than 700 million kg in 2009-10 due to higher price realisation last year and scanty rainfall.
“We have estimated the tobacco production at 700 million kg in 2009-10 as against 690 million kg in 2008-09,” said J Suresh Babu, chairman, Tobacco Board.
However, the board is concerned over the fact that the production may even surpass its current estimate as more and more farmers in major tobacco growing regions such as Andhra Pradesh are opting for tobacco in the wake of higher prices.
Due to spurt in global demand following low tobacco production in leading growing countries such as Europe last year, flue-cured virginia (FCV) tobacco farmers received a price of Rs 108 a kg in 2008-09 as against Rs 84 a kg in 2007-08. Interestingly, 1.5 million kg of tobacco was auctioned in Karnataka recently and the price was quoted at Rs 113 a kg.
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