September 21, 2015 4:09 PM

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Tobacco crop will be purchased by traders, says govt

Union Commerce and Industry Minister Nirmala Sitaraman assured tobacco farmers of Andhra Pradesh that their entire crop will be purchased by traders by the end of the month. She made the statement after visiting Prakasam district personally to assess the tobacco purchase situation, after three farmers committed suicide due to low prices since traders were unwilling to purchase low quality tobacco.Later she held a discussion with Chief Minister N. Chandrababu Naidu to find a solution on distressed tobacco sale in the state. Both Sitharaman and the Chief Minister addressed the media jointly.Ms. Sitharaman said that out of the total permitted tobacco production of 172 million kg, traders had purchased 143.72 million kg, while the remaining 28.22 million kg have been treated as low-grade tobacco. She said that traders had offered low prices of Rs 30 to Rs 35 per kg for low-grade tobacco.She said that farmers had produced another 21 million kg without any permission from the Tobacco Board and now the traders have agreed to purchase both low grade as well as unauthorised tobacco. The Minister said the Tobacco Board would pay Rs 15 per kg in addition to the price offered by the traders and the Andhra Pradesh State government has agreed to pay another Rs 5 per kg of tobacco.

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