The Center has allowed tobacco farmers to sell excess tobacco grown in Karnataka during the 2023-24 crop season without any penalty.
A statement from the office of the regional manager of the Mysuru Tobacco Board said that in view of the prevailing drought conditions during the 2023-24 crop season, Union Commerce and Industry Minister Piyush Goyal has waived restrictions on the sale of excess tobacco produced by registered growers and unregistered growers. Fines levied on authorized tobacco.
As a regulated crop, tobacco can only be grown by licensed growers up to limits approved by the Tobacco Board. The board has allowed 100 million kg of tobacco to be grown in Karnataka in the 2023-24 crop season and fixed the quota for each barn owner.
Following a notification issued by the Center on January 23, 2024, the Tobacco Board said that during the 2023-24 crop season, surplus tobacco produced by registered growers and unauthorized tobacco grown by unregistered growers will be allowed under the Tobacco Board Sold on the auction platform at normal applicable service fees without any additional fees or penalties.
"Therefore, all registered growers producing surplus tobacco and unregistered growers producing unauthorized tobacco are requested to submit the required submissions on the concerned auction platform," Tobacco Board Regional Manager said in a statement issued in Mysuru on Wednesday. Declaration and Letter of Undertaking to permit the sale of excess/unauthorized tobacco.”
On September 25, 2023, the Karnataka flue-cured Virginia (FCV) auction for the 2023-24 crop season began. As of January 23, 2024, a total of 84 auction days were completed, and a total of 63.44 million kilograms of tobacco leaves were sold at an average price of 249.78 rupees per kilogram.
The statement said that tobacco production this year is expected to be about 82.85 million kilograms, and 76.57% of tobacco leaf sales have been completed.
The average price of light grade tobacco is Rs 257.65 per kg and the average price of medium grade tobacco is Rs 253.03 per kg. The average price of low-end varieties is Rs 237.55 per kg.
"Compared to the previous season, this year bright trade tobacco has increased by Rs 17.59 per kg, medium grade tobacco has increased by Rs 20.65 and low grade tobacco has increased by Rs 26.27. Overall, the prices this year have been higher than the previous year due to the active market 21.78 rupees per kilogram.”
The statement pointed out that in the subsequent auction season, the prices of waste tobacco and cut tobacco were also very good. A total of 2.9 million kilograms of waste and shredded tobacco were sold at an average price of Rs 146 per kilogram, which was Rs 38.57 higher than last year.
The regional manager of the Tobacco Bureau asked growers to actively participate in the ongoing auctions, while calling on them to "liquidate their stocks immediately when the market is active and stable, and do not wait any longer to fall into the trap of middlemen or commission agents, resulting in illegal sales of stocks."
