Global supply shortage buoys tobacco prices in AP

Global supply shortage buoys tobacco prices in AP

Sub: Geo

Sec: Eco Geo

Context: Strong export demand due to supply shortage in the global market lifted tobacco prices at the ongoing auctions in Andhra Pradesh, the largest producer of the commodity in the country.

Stakeholders said a shortfall in supplies from countries such as Zimbabwe and Brazil, among others, had led to increased demand for Indian produce in the overseas market in the recent months

Tobacco crop:

• Tobacco cultivation in India was introduced by the Portuguese in 1605.
• It is a drought-tolerant, hardy and short-duration crop which can be grown on soils where other crops cannot be cultivated profitably.
• The cultivation of tobacco usually takes place annually.
• The tobacco is germinated in cold frames or hotbeds and then transplanted to the field until it matures.
• It is grown in warm climates with rich, well-drained soil.
• For tobacco 50-100cm annual rainfall and 15-20^o C temperature during the growth period is ideal.
• Tobacco cannot stand if rainfall is more than 100cm. After harvesting to dry the leaves it requires bright sunshine & dry weather but not less than containing 8% moisture.
• About 4.2 million hectares of tobacco were under cultivation worldwide in 2000, yielding over seven million tonnes of tobacco.

Varieties of tobacco crop:

• Ninety-three varieties including Flue Cured Virginia (FCV) (29), Burley (3), Natu (5), Lanka (2), Chewing (17), Bidi (15), Cheroot (3), Cigar (4), Hookah & chewing (15) types have been released for the farming community. Breeding efforts are made for developing varieties with high solanesol, high flavour, low nicotine etc. CMS hybrids having higher levels of flavour compounds have also been developed.
• 80-85% of India’s tobacco exports continue to be FCV alone.

Top products:

• The top producers of tobacco are China (39.6%), India (8.3%), Brazil (7.0%) and the United States (4.6%).
• In India, Andhra Pradesh is the largest producer of tobacco. Gujrat, Karnataka, Bihar and Odisha are other tobacco-producing states.
• India has seven tobacco research centres that are located in: Jeelugumilli, A.P., Kandukuru, A.P., Guntur, A.P., Kalavacherla, A.P., Hunsur, Karnataka, Vedasandur, Tamil Nadu,Dinhata, West Bengal; and Rajahmundry houses the core research institute.
• The government has set up Tobacco Board Guntur which works to increase the production, sale and exports of Indian tobacco. Guntur is also well known for its tobacco plantations.
•  India is one of the leading exporters of tobacco and occupies second place after Brazil. The country accounts for 6% by volume and 0.7% by value of the world tobacco trade.

Risks faced by tobacco farmers:

• Farmers are trapped in a vicious cycle of debt as a result of unfair contractual agreements with the industry.
• Green tobacco sickness, a form of occupational poisoning which is caused by nicotine absorbed through the skin from the handling of wet tobacco leaves,
• Exposure to heavy use of pesticides and exposure to tobacco dust.
• Child labour and gender inequality.
• Environment pollution.