The Hindu Business Line : Tobacco farmers want excise duty to be cut

Hyderabad, April 9 Irked by the steep increase in excise duty on non-filter cigarettes, tobacco farmers have asked the Union Government to withdraw the decision immediately.

They alleged that the decision would wipe out the non-filter cigarette segment that accounted for 30 per cent of the total tobacco crop production.

Addressing a press conference here on Wednesday, representatives of tobacco farming community have said that the duty went up to Rs 1,323 from Rs 546 on 1,000 cigarettes with 60-70 mm length. “This is a raise of 250 per cent. The duty on 60 mm cigarettes too increased by 500 per cent to Rs 819 from Rs 168. This will have a negative impact on the tobacco prices,” Mr Sivaram Prasad, General Secretary of Tobacco Growers’ Welfare Association, said.

Of the 650 million kg of tobacco products India produced, Andhra Pradesh and Karnataka contributed 230-250 million kg of FCV (flue cured Virginia). “Of this, we export 150 million kg, leaving 100 million kg for domestic consumption. It is surprising that the Government looked at this small portion as something with toxic effect,” he said.

Stating that the Government’s decision would decrease demand, he said the fate of 3.5 million people who depended on tobacco would hang in balance.

When pointed out that the move was aimed to discourage people from smoking, Mr Sivaram Prasad said they too supported the view. “But we need time to look for alternative crops,” he said.

Appealing to the Prime Minister, Dr Manmohan Singh, to roll back the decision to increase the duty, Mr G Seetharamaiah, former Vice-Chairman of the Tobacco Board, said that the hike could match the inflation rate.

More Stories on : Tobacco | Excise and Customs | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rice for Rs 2 a kg

Indigenous method

It’s dosas and idlis still, Mr Pawar, not parathas!

Spot rubber prices decline

Maharashtra drive to check hoarding

Nabard sets higher short-term refinance target of Rs 22,000 cr

Tobacco farmers want excise duty to be cut

Chana futures gain on improved demand

Edible oil duty waiver throws trade out of gear

All-party delegation from Kerala to meet PM on crop loss

No short-term relief in world food prices: FAO