Rediff Logo Business Banner Ads
Find/Feedback/Site Index
HOME | BUSINESS | NEWS
June 26, 1998

COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Email this story to a friend

Bonfires of tobacco threaten Naidu

A Special Correspondent

The storm over cotton farmers's suicides shook the Andhra Pradesh government just before the February general election.

With nearly 300 cotton farmers committing suicide -- one such farmer attempted suicide at an election meeting addressed by Chief Minister Nara Chandrababu Naidu in Prakasam district -- the Opposition Congress termed it as an unprecedented government-made tragedy.

But little has been done to mitigate the plight of the farmers, several of whom stormed New Delhi recently to focus attention on their problems.

As the cotton growers continue to grapple for their rights, dark smoke clouds billowing from bonfires of tobacco threaten to rock the Naidu government again.

If crop failure played havoc with the lives of cotton growers, the season of surplus has plunged the tobacco farmers in dire straits.

''Considering that these farmers had switched to tobacco after burning their fingers with the failed cotton and chilli crops, one can imagine their plight,'' said a leading tobacco farmer.

With tobacco production reaching a record level of 175 million kg, including a 40 million kg unauthorised output, this year, the prices of flea-cured virginia came tumbled down from Rs 85 to Rs 45 per kg.

Adding to the farmers' woes was a backlog of 25 million kg. And the markets at Deverapalli, Guntur, Kunool and Jangareddygudem were facing an unprecedented glut.

Disgusted with the low returns, the farmers have already burnt nearly 20 million kg of low-grade tobacco, deciding against wasting their hard-earned money on curing operations.

Even tobacco giants like ITC and GTC have picked up less than 50 per cent of their requirements, leaving the markets in the lurch, said a source.

As the wave of resentment spreads, a major drive has been launched to check the prices even as the tobacco yards have been closed.

Asked about the falling prices, a Tobacco Board source blamed it on the international trend. If countries like Brazil and the US were selling 10 per cent below last year's prices, Zimbabwe has slashed it prices by nearly 45 per cent.

As a result, the Board official feels India will sell 20 per cent less than last year's 144,000 tonnes.

Only time will tell whether this means more trouble for Naidu as Andhra Pradesh inches closer to the assembly election, which are due next year.

Tell us what you think of this report
HOME | NEWS | BUSINESS | CRICKET | MOVIES | CHAT
INFOTECH | TRAVEL | LIFE/STYLE | FREEDOM | FEEDBACK