Farmers oppose govt's plan to introduce contract farming

New Delhi: Tobacco farmers and farm leaders from Andhra Pradesh and Karnataka such as the Virginia Tobacco Growers Association, Federation of Karnataka Virginia Tobacco Growers Association, Kondapi Tobacco Growers Association, Kaligiri FCV Tobacco Growers Association, have vehemently opposed the idea of contract farming into the tobacco sector and stated it will have adverse consequences on their livelihoods.

The farmers also said that Covid-19 has inflicted disastrous economic losses on Flue Cured Virginia (FCV) farmers and any move to bring contract farming into the tobacco sector will only further aggravate the problems of the pandemic-battered farmers who are struggling to make ends meet.

Opposing the government's plan to introduce contract farming in the Indian tobacco sector, Gadde Seshagiri Rao, former Vice Chairman, Tobacco Board stated: "Contract farming is no match to our transparent auction system which ensures fair pricing for FCV tobacco. In fact, this system has enabled even a small and marginal FCV tobacco farmer to realize a better price for their produce by making Indian FCV tobacco farmers the only set of growers in the world who have generated better returns on a year-on-year basis with very minimal fluctuations. We should evaluate the contract faming keeping in mind its long-term repercussions. We believe that this is being pushed by handful players who are misguiding the policy makers for their own interest and jeopardizing the interests of the larger tobacco farming community."

FCV tobacco farmers alleged that the foreign tobacco multi-nationals, who are witnessing tepid sales in global markets and are prohibited as per Indian FDI regulations to invest in India are trying to get a backdoor entry in the country by pushing for contract farming.