Tobacco purchasing companies instructed to fix a price on the lines of Andhra Pradesh

Mysore/Mysuru: Union Minister for Heavy Industries and Steel H.D. Kumaraswamy (HDK) has sought a report from Tobacco Board by tomorrow (Mar. 4), after holding discussions with tobacco products manufacturing companies on purchasing tobacco from the farmers at a fair and                                    remunerative price.

He was chairing a meeting with the officials of Tobacco Board, at the meeting hall of Central Institute of Indian Languages (CIIL) in city yesterday, over the auction of FCV tobacco at a rate benefiting the farmers.

Minister for Animal Husbandry and Sericulture K. Venkatesh, Mysuru-Kodagu MP Yaduveer Krishnadatta Chamaraja Wadiyar, MLAs G.D. Harish Gowda, D. Ravishankar and A. Manju, MLCs C.N. Manjegowda and K. Vivekananda, former MLA K. Mahadev, Tobacco Board Chairman C. Yashwanth Kumar, Executive Director B. Viswasree and others took part in the meeting.

Financial hardships

Referring to the prevailing scenario, following the fall in tobacco purchasing rate after Sankranti festival, Kumaraswamy said, if the fair and remunerative price as demanded by farmers was not fixed, the purpose behind convening the meeting will be rendered useless. The fall in price has pushed the farmers towards financial hardships and has added to their mounting grievances, which is being heard constantly, he rued.

Kumaraswamy appealed to the officials of Tobacco companies to buy tobacco from farmers in accordance to the rate fixed in Andhra Pradesh.

Maximum rate

Minister K. Venkatesh categorically instructed the Tobacco companies to provide maximum rate, matching the price that existed earlier.

Foreign Companies

MP Yaduveer Wadiyar instructed Tobacco Board to allow foreign companies to participate in the auctioning of tobacco.

“If foreign companies take part in auctioning process, there will be more competition, that may help in breaking the monopoly, that would eventually benefit farmers in availing a better price. On the other hand, racket of fake cigarette companies can be kept under check, thus curtailing incidents of fraud in business,” explained Yaduveer Wadiyar, who also stressed on providing basic amenities like shelter, toilets, hotel and others for farmers at Tobacco Auction Centres.

Going back on assurance

MLA Harish Gowda questioned the attitude of Tobacco companies, who had encouraged farmers to increase the cultivation of tobacco, promising to purchase up to 90 million tonnes, only to renege on their promise later.

MLA Manju, who took Tobacco companies to task, asked the latter what alternative plans do they have, if the farmers stop tobacco cultivation. The Indian Tobacco Company (ITC) alone procures 70% of tobacco through auction, minting crores of rupees, to hit fame in and outside the country, without giving due credit to farmers.