Andhra flue-cured target slashed by 30 percent

The 2015-16 authorized flue-cured crop for the Indian state of Andhra Pradesh has been cut by 30 percent from that of 2014-15, according to a story in the New Indian Express.

The Tobacco Board, at a meeting in Hyderabad on Friday, decided – based on indications given by the Indian Tobacco Association (representing tobacco manufacturers, dealers and exporters) – to fix the crop size for 2015-16 at 120 million kg as against 172 million kg for 2014-15.

The board resolved to form a committee comprising representatives of the association, growers and the board to recommend a price range for the 2015-16 Andhra crop.

It decided also to limit the production strictly to the authorized crop size by dealing ‘sternly’ with excess production; so as to ensure fair and remunerative prices to growers, according to a board press note.

Whether it will be able to limit production in this way has to be in doubt, especially given the enormity of the crop-size reduction. It has certainly proved difficult to impose such limits in the past. Much will depend on the timing of any elections and on what crop-size reduction is imposed in the other flue-cured state – Karnataka.

It was reported that the board had reduced the size of the crop for 2015-16 after taking into consideration the gloomy situation on the world market, the presence of carryover stocks, declining demand for tobacco on the domestic market and growers’ demands for ‘remunerative prices for their produce’.

This season’s flue-cured auctions have been sluggish, but, apparently, the trade has said that it will buy the remaining 135 million kg before the end of September.