THE Tobacco Industry and Marketing Board (Timb) has proposed that buyers should exhaust the local crop before they can import burley tobacco in a move meant to save the sector from extinction.
The proposal comes ahead of the opening of the 2012 selling season next month. Timb chairperson Monica Chinamasa told Standardbusiness last week that the move was also meant to keep the growers on the land. “We encourage buyers to purchase the local crop because it might be there outside the country yet they would have killed the local producers,” she said.

Burley tobacco growers have struggled over the years to sell their crop after the closure of Burley Marketing Zimbabwe (BMZ), an auction floor that was dedicated to the marketing of burley tobacco.

Burley tobacco growers — who owned BMZ — sold the floor to Savannah Tobacco, a cigarette manufacturing company, in 2010.

There was chaos last year after growers could not find a buyer for their crop. It was finally sold for a song at Boka Tobacco Floors.

Burley tobacco deliveries rea-ched an all-time peak of 16 million kg in the 1990’s. At that time, Zimbabwe was competing with Malawi, which has since outpaced it.

Chinamasa said the chaos which happened last year would not repeat itself in the coming season as the Timb board resolved that burley tobacco growers have to be catered for and tasked the regulator to ensure that they are registered for planning purposes.

She however, said that buyers were complaining the local crop was expensive, compared to the one from Malawi.

The high prices emanate from the high production and the local crop cannot compete with the one from Malawi where most of the inputs are subsidised.

Chinamasa told Standardbusiness Timb had resolved at a board meeting on Thursday that congestion should be minimised during the 2012 selling season.

She said unlike last year, four tobacco floors — Tobacco Sales Floor, Boka Tobacco Floors, Millennium Tobacco and Premier Tobacco — would open simultaneously and it was up to each floor to reach out to growers.

Last year, the selling season opened with one floor running, Tobacco Sales Floor while Boka and Millennium later joined during the course of the selling season.

The board meeting also resolved to exercise its mind on how tobacco growers should be supported at a time of liquidity constraints with banks unable to finance farming.

“We are looking at initiatives of supporting the grower who is doing well but can do more if supported. Tobacco is contributing a huge chunk to the Gross Domestic Product but that is not being reciprocated by those who allocate resources,” she said.

Chinamasa said that only growers under contract are well-catered for in terms of financing. The rest, she said, are struggling to make ends meet.

Tobacco production is on the increase buoyed by favourable prices on the auction floor but it has not yet reached yesteryears’ peak.

In the 2011 season 132,4 million kg were sold below the 170 million kg output which had been projected by Timb.

It raked in US$361,5 million compared to US$355,6 million realised in 2010. At its peak Zimbabwe produced 236 million kg in 2000.

The government has urged tobacco farmers to distance themselves from unfounded claims about the crop, and instead work tirelessly to grow the crop more responsibly. Also, tobacco farmers in developing countries have been advised to transform their farming methods to match those of their counterparts in developed countries, including the use of modern farm implements and irrigation.

Minister for Agriculture and Food Security Prof Jumanne Maghembe made the call at the opening of the annual general meeting of the International Tobacco Growers Association (ITGA), which took place in Tanzania for the first time.
“It is time you emulated your colleagues in developed nations who grow tobacco in a modern manner by doing away with inferior farm implements, particularly the hand hoe. The use of tractors and oxen ploughs to facilitate the farming is still small, hence farmers’ average acreage is between 0.8 and 1.0 hectares per family,” he said in a speech read on his behalf by Permanent Secretary Mohammed Muya.
He urged stakeholders to check post-harvest losses because currently growers lost up to 30 per cent of the crop, adding that the sector should embark on capacity building in barns building, bailing sheds, storage as well as increasing processing facilities.
“However, despite all the benefits to our people and economies of our countries, the crop, under the umbrella of World Health Organization Framework Convention on Tobacco Control (WHO-FCTC), in particular articles 9, 10, 17 and 18, is experiencing a number of critics and there is an urgent need for a balance that accounts for the interests of tobacco growers in many countries,” he said.
According to Prof Maghembe, the sector should continue to regulate itself responsibly as its future would depend on its ability to navigate through uncharted waters.
“Crudely-generalized statements against tobacco hold tobacco growers responsible for the relentless deforestation, basing on the hypothesis that all types of tobacco require conventional heat to be cured and that the only fuel used was wood.
“However, researchers have found that the sector accounted for 1 per cent of all wood consumed in developing countries and also curing some types of tobacco like barley uses sunlight,” the minister said.
Prof Maghembe said tobacco was the only sector that advocated preservation of the environment, including avoidance of land degradation by adopting a tree planting policy and records showed since the year 2009/2010 more than 20 million trees were planted each year by tobacco growers.
He mentioned various advantages of tobacco over other alternative means of livelihood that it enjoyed high price stability with a guaranteed market, hence helping to improve the quality of life in rural areas.
The minister said with a view to eradicating child labour in tobacco farming, ITGA in conjunction with the International Union of Food (IUF) and the International Labour Organization ILO, had established a special foundation on Eliminating Child Labour in Tobacco-growing (ECLT) projects in Malawi, Tanzania, Uganda, Zambia and Kyrgyzstan.
Presenting her paper titled ‘International tobacco control legislation and possible effects on the tobacco sector’, Barbara Martelini of Ultoco Service S.A., a Geneva-based subsidiary of Universal Leaf Inc of USA, which is the parent company of Tanzania Leaf Tobacco Company, stressed that it was high time the tobacco sector worked more closely to ensure correct presentation of facts.
Speaking at the meeting, Director General of the Tanzania Tobacco Board,(TTB) Frank Urio said tobacco was an important crop for the development of the economy as it offered direct employment for well over 130,000 families countrywide.
“Apart from billions of shillings contributed to the central government in various taxes paid by the growers, leaf buyers and cigarette manufacturers, the crop also hugely benefits local governments in the form of crop cess. For example, last year alone crop-cess from tobacco countrywide was 14bn/-,” he noted.
Apart from the host, the meeting attracted participants from 20 countries, including South Africa, Argentina, Brazil, Bulgaria, China, Colombia and Croatia.
Others wrere USA, Philippines, India, Indonesia, Italy, Malawi, Mexico, Pakistan, Portugal, Kenya, Dominican Republic, Uganda, Zambia And Zimbabwe.

May rainfall in Danville has been more than two inches above normal for the month and the extra precipitation is impacting the region’s farmers. The Danville area has been hit with 5.28 inches of rain this month, said Will Perry, meteorologist with the National Weather Service in Blacksburg. The frequent downpours are affecting the region’s farmers, especially tobacco growers, said Stephen Barts, extension agent with the Virginia Cooperative Extension in Pittsylvania County. The weather has been a hindrance, causing many farmers to stop planting and cultivation, Barts said.

“Typically, by this time, everybody has been done planting and are cultivating for the first time,” Barts said.

Because of rains, only two or three days were suitable for fieldwork last week and the week before, Barts said. Planting season in 2010 was dry, with planting and irrigation of tobacco going on at the same time, Barts said.

Mud makes it impossible for farmers to move their equipment through the field, while planting and cultivating in those conditions make the land “hard as a rock,” Barts said.

“You don’t want to compact it,” he said.

Axton tobacco grower Darrell Jackson said of the weather’s effects on farmers, “It’s tough right now.”

“In Henry County, we’ve been probably wetter than anybody,” said Jackson, who lives about a mile and a half mile west of the Pittsylvania County line. “We’ve had a time.”

Jackson said he has planted about seven acres of his 16-acre tobacco crop. He hopes to plant the remainder Saturday or Sunday.

Jackson said about two inches of rain will fall and then stop, slowing farmers’ operations for four days before another small downpour adds more moisture. Jackson usually finishes planting his tobacco crop by mid-May, but he will be further behind this year if wet weather returns Friday.

“I’d be lucky to get it all planted by the first of June,” Jackson said.

In addition, getting pushed too far behind can put crops in risk of frost damage in the fall, Jackson said.

Another prospect farmers fear during this wet season is the sudden cut-off of rain, Jackson said.

Java farmer Keith Atkinson said he hasn’t had much trouble with heavy rains this year, but would worry if rain doesn’t appear in July or August. Atkinson has experienced frequent showers bringing about a third to a half-inch of accumulation, with no damage to crops.

“It’s been almost ideal for wheat and hay crops,” Atkinson said.

Rainfall has slightly interrupted tobacco planting for Atkinson. He could use another 1/2 day to finish planting the remaining eight acres of his 140-acre crop, which still needs cultivating, he said.

“It’s (rainfall) probably speeding up the tobacco we’ve already planted,” Atkinson said.

If Atkinson continues to get normal rainfall, a frost in the fall won’t be a threat, he said. Last year, drought forced Atkinson to wait until November to pull his tobacco, which he usually pulls by mid-October.

“We’re going to have to work with whatever Mother Nature gives us,” Atkinson said.

North Carolina tobacco growers have agreed to continue funding tobacco-agricultural research for another six years.

More than 92 percent of tobacco growers in the state who voted favored the North Carolina Tobacco Research Check-off Referendum, which calls for growers to allocate 10 cents per 100 pounds of flue-cured and burley tobacco to tobacco research and education. The referendum is voted on every six years and must be approved by two-thirds of voters to pass.

The funds are collected at buying stations by the North Carolina Department of Agriculture and Consumer Services and then allocated to North Carolina State University by the North Carolina Tobacco Research Commission. Since 1991, the program has raised nearly $300,000 a year to support projects at NCSU.

“The tobacco check-off funds have resulted in many important developments for the state’s burley and flue-cured tobacco farmers, including variety development, improved nitrogen management, advanced curing technologies and breakthroughs in pest and disease management,” said Johnny Wynne, dean of NCSU’s College of Agriculture and Life Sciences.

Tobacco growers have been forced to fund nearly all research into improved tobacco agriculture practices. The federal government ceased tobacco research funding in 1994, and state support has declined due to budget deficits.

“This referendum is critical for North Carolina tobacco growers to remain competitive in the world market,” said Keith Oakley, president of the North Carolina Tobacco Foundation. “By voting to continue this self-help program, the state’s tobacco growers are making an important investment in the future of tobacco production, research and education in North Carolina.”

Tobacco growers of Mysore district today blamed the Tobacco Board for fall in prices of the globally much-sought after India’s flue cured Virginia (FCV) tobacco cultivated in Karnataka.

“Though open auction system for the sale of tobacco operates, the Board and the tobacco-buying companies have colluded and fixed a single ceiling rate, jeopardizing the interests of the cultivators, Virginia Tobacco Growers’ State-level President Javare Gowda charged here today.

He, along with other tobacco growers’ association leaders, told a press conference that consequent to the Board’s anti-farmers’ attitude, tobacco cultivators were not even able to cover their expenses.

Javare Gowda opposed the proposal of Board chairman J Suresh Babu to introduce open market system for tobacco marketing.

“If traders are allowed to buy directly from the market, the growers’ interests would totally suffer. The Board is safeguarding the interests of the traders instead of protecting the farmers,” he citicised, urging the Centre not to allow the proposed open market system for tobacco.

SC & ST Tobacco Growers’ Association State President Nagaraj Malladi said despite good prices in the international market for Indian tobacco, with its anti-growers’ approach the Board was compelling them to sell tobacco at lower prices than the previous year. They were getting Rs 120-125 as against Rs 198 a kg last year.

Though two months had passed since the commencement of tobacco auction during the current season, the Board had not appointed vigilance squads to check unofficial sale of tobacco. Companies had bought around 10 million kg tobacco outside and this had affected the rate the cultivators should have got. “This clearly shows that the Board is hand in glove with the traders,” he said.

Another leader Chandre Gowda charged that the Board had deducted Rs. 1,218 as insurance premium from their amount without their knowledge.

This had proved a burden to the cultivators who were already hit by low prices. This amount should be refunded, he said. Making a demand for immediate introduction of electronic auction, which the Board had decided earlier and spent money too, District Farmers’ Association president Hosur Kumar said electronic auction was aimed at reforming tobacco marketing and would ensure fair marketing and increase competition in the tobacco market.

The leaders cautioned the Board that if it failed to meet their demands and bring about changes in the interest of tobacco cultivators, they would be compelled to resort to agitation. They also pleaded with the Centre and State governments to intervene and protect their interests.

Last year, Karnataka had marketed 109.71 million kg tobacco at an average price of Rs 114 per kg, against its authorised production of 97.3 million kg. Andhra Pradesh had marketed 84.75 million kg at a higher average price of Rs 165.3 a kg. Its authorised production was 149.9 million kg. Karnataka’s 2009 authorized crop has exceeded 100 million kg for the first time.

Chennai/ Mysore 10 November, 2009, Business-standard

HYDERABAD: The State Government is contemplating providing crop loans to tobacco- growers under the Pavala Vaddi scheme,, Agriculture Minister N Raghuveera Reddy has said.

Addressing farmers at the 10th Tobacco Institute of India awards here today, Reddy said that only 20 per cent of Indians smoked or chewed tobacco as against 90 per cent in western countries. Nearly 80 per cent of the total tobacco production in the country was being exported.

“Despite their big contribution to the Indian GDP and exports, the Indian tobacco farmers are not getting enough encouragement,’’ he observed.

Recalling the late chief minister Y S Rajasekhara Reddy’s contribution to the welfare of the farming community, the agriculture minster said farmers had lost a a great leader.

“We will continue to support the farmers,’’ he assured.

Stating that the Centre was adopting stringent policies to curb tobacco production, director of Tobacco Institute of India Udayan Lal requested the Union Government to keep in mind the problems being faced by tobacco-growers before passing the Act. “The stringent laws are discouraging tobacco cultivators,’’ he said while urging the minister to take up the matter with the Centre.

Presenting the awards to farmers, the minister appreciated the efforts of the farmers despite several hurdles in cultivating tobacco.

The TII presented 15 awards to tobacco-growers from Andhra Pradesh and Karnataka _ seven in the Best Farmer category, seven Recognition awards and one Lifetime Achievement award.

The Best Farmer and Lifetime Achievement award winners received Rs 20,000 cash prize and a citation, and the Recognition award recipients were given a Rs 10,000 cash prize and a citation.

The TII has been presenting these awards since 1999 to encourage the progressive and scientific agricultural practices by the Indian tobacco farming community.

16 Oct 2009 Expressbuzz