Date:19/04/2007 URL: http://www.thehindubusinessline.com/2007/04/19/stories/2007041902472100.htm

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Our Bureau

Hunger strike against `ITC monopoly'

Vijayawada April 18 Tobacco growers boycotted auctions at the Keesara platform near Nandigama in Krishna district and launched a relay hunger strike on Wednesday, demanding remunerative prices.

Transactions on the floor were being disrupted for the past few days by discontented farmers. Dr Y. Sivaji, the President of the Andhra Pradesh Tobacco Growers' Association, said that ITC was monopolising the Indian market and buying up 60 per cent of the leaf tobacco, was fixing a ceiling price and the smaller buyers were not able to go beyond it.

"There is no real competition on the Indian auction floors, with the leading company calling the shots," he said.

He said the growers on the Jangareddigudem floor in West Godavari district had also boycotted auctions for the same reason on Wednesday.

He said efforts would be made to resolve the issue, seeking the intervention of the Tobacco Board.

However, Dr Sivaji said, there ought to be a permanent solution to the problem. That, in his view, was allowing the international leaf merchants to participate in the Indian auctions.

"We have represented to the Union Commerce Minister and the Prime Minister recently, in New Delhi, on the issue and we are hopeful of a positive outcome. Farmers will not get a fair price in a market monopolised by a single company," he said.