FAIFA Says 43% Tobacco Crop Cut Risks Fresh Financial Shock on Farmers

PS Murali Babu, FAIFA President, said the scale of the reduction could impose a “fresh financial shock” on farmers. Many are still recovering from the previous season's losses. The costs of maintaining curing barns, labour and other farm infrastructure will not decline in proportion to the crop allocation, he pointed out. Smaller holdings could become unremunerative.

Most growers cannot shift to alternative crops quickly, Murali Babu said. Low rainfall and specific agro-climatic conditions in many FCV-growing belts sharply limit the range of crops that can offer comparable and dependable returns. “Crop diversification must therefore be supported only where it is agronomically suitable, economically viable and backed by assured markets,” he added.

India's growers face intense competition from major producing countries such as Zimbabwe, Brazil, Zambia and Malawi, FAIFA noted. Those countries have expanded production even as international prices weakened. The association also said unauthorised cultivation has significantly contributed to the current demand-supply imbalance.

The Tobacco Board has not yet responded to FAIFA's concerns.