PRODUCTION REGULATION

 According to Section 8(2)(a) of the Tobacco Board Act, one of the important functions of the Tobacco Board is to regulate production and curing of FCV tobacco having regard to the demand for tobacco in India and abroad, marketability of different types of FCV tobacco and other factors so as to ensure fair and remunerative prices to growers.  This objective is sought to be achieved through crop planning and fixing crop size of FCV Tobacco for Andhra Pradesh and Karnataka separately every year and by registering commercial nurserymen, tobacco growers and barn operators.

1. PROCEDURE FOR FIXING CROP SIZE:

 a)    Every year Tobacco Board lays down production Policy and fixes crop size for different soil regions in Andhra Pradesh and Karnataka taking into consideration various factors specified in clause (a) of sub section (2) of section 8 of Tobacco Board Act, 1975 like the demand for flue cured virginia tobacco in India and abroad and the marketability of different tobaccos etc as per Rule 33-A of Tobacco Board Rules, 1976. 

b)     For projecting the demand, Tobacco Board ascertains the requirements of the manufacturers and the exporters. Board also takes into consideration the global supply situation; the carryover stocks lying in the market from the previous crops and also the specific demand for tobaccos grown in various areas such as Northern light soils, southern light soils and traditional black soils in Andhra Pradesh and Karnataka light soils. Based on the demand projected, the Board evolves the production strategy and fixes crop targets area–wise.

 2. CROP REGULATION BY BOARD.

a)    The crop regulation by Tobacco Board is demand driven and any increase/ decrease in crop size is as per the demand and supply of FCV tobacco in domestic and international markets.  Moreover, the Government of India had freezed the upper ceilings limits of crop size for FCV tobacco at 270 million kg (Andhra Pradesh – 170 M.kg and Karnataka – 100 M.kg) and Tobacco Board is regulating the cultivation in and around these limits.

 b)    India is a signatory to WHO’s Framework Convention on Tobacco Control (FCTC) whereby there is an obligation to implement the provisions of the FCTC in India to reduce the consumption of tobacco by implementing demand and supply reduction measures. Tobacco Board is regulating FCV tobacco production keeping this objective also in view, by appropriate supply management, which also helps in ensuring remunerative prices to growers.

 c)    As a policy, Tobacco Board has restricted horizontal expansion of the area under tobacco by not granting registration to new growers, and not issuing any licenses for construction of new barns, creating additional curing infrastructure and not expanding FCV tobacco cultivation to new areas.

Crop Production Policy for Karnataka (2022-23 Season) 

For 2022-23 season, Board has fixed a crop size of 100 M.Kgs in Karnataka.

The area for registration and production quota allotted are as follows: 

Crop Production Policy for  Andhra Pradesh (2021-22 crop season)

      For the State of Andhra Pradesh, the Board has fixed a crop size of 130 million kg. for 2021-22 crop season.

The area registered for cultivation and quota allotted for various soil regions is as follows:

   Particulars of Crop Size Fixed, Growers / Barns registered, Crop Planted and Marketed for the last 10 years (State wise):