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Date: 2015-09-03 Category: Extra Ordinary State: Union Government Country: India

The Central Government has been informed by the Tobacco Board that a large number of registered growers have cultivated flue cured virginia tobacco in excess of the authorised quantity and unregistered growers have also resorted to unauthorised flue cured virginia tobacco.

Issued by Ministry of Commerce and Industry · Department of Commerce

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Executive Summary & Key Takeaways

Executive Summary: These notifications, issued by the Ministry of Commerce and Industry, address the unauthorized cultivation of flue-cured Virginia tobacco in Andhra Pradesh. The Central Government authorizes the Tobacco Board to allow the purchase of excess and unauthorized tobacco at its auction platforms until December 31, 2015. The notifications outline specific financial contributions to the Tobacco Fund required from both registered and unregistered growers. Key Points / Main Content: Authorization for Tobacco Purchase: * The Tobacco Board is authorized to allow registered traders and dealers to purchase excess flue-cured Virginia tobacco from registered and unregistered growers in Andhra Pradesh. * This authorization is valid from the date of publication of the notification until December 31, 2015. Financial Contributions to Tobacco Fund (Registered Growers): * For excess tobacco up to 15% of the authorized quota for the 2014-15 crop season: Rs. 2 per kilogram and 7.5% of sale proceeds (including a 1% service charge) must be contributed to the Tobacco Fund. * For tobacco exceeding 15% of the authorized quota: Rs. 2 per kilogram and 15% of sale proceeds (including a 1% service charge) must be contributed to the Tobacco Fund. Financial Contributions to Tobacco Fund (Unregistered Growers): * Unregistered growers must contribute Rs. 2 per kilogram and 15% of sale proceeds (including a 1% service charge) to the Tobacco Fund for all flue-cured Virginia tobacco produced for the 2014-15 crop season. Documentation: * A copy of the Record of Rights for the 2014 tobacco crop must be furnished. Relaxation of Restrictions: * The operation of provisions of subsection 1 of section 10, read with subsection 1 of Section 14A of the Tobacco Board Act is relaxed in Andhra Pradesh until December 31, 2015, to permit the sale of excess tobacco. Impact Analysis: Central Government: * Impact: Responsible for addressing the mismatch between tobacco supply and demand and ensuring compliance with the Tobacco Board Act. * Action Required: Monitor the Tobacco Board's implementation of the authorized purchases and ensure adherence to the specified conditions. Tobacco Board: * Impact: Authorized to oversee the purchase of excess and unauthorized tobacco and collect contributions to the Tobacco Fund. * Action Required: Implement the authorization, manage auction platforms, collect contributions, and ensure compliance with the conditions outlined in the notification. Registered Tobacco Growers: * Impact: Subject to specific financial contributions to the Tobacco Fund based on the quantity of excess tobacco produced. * Action Required: Pay the required contributions to the Tobacco Fund, furnish the Record of Rights, and adhere to authorized quota limits in the future. Unregistered Tobacco Growers: * Impact: Required to contribute to the Tobacco Fund for all flue-cured Virginia tobacco produced. * Action Required: Pay the required contributions to the Tobacco Fund and furnish the Record of Rights. Tobacco Traders and Dealers: * Impact: Permitted to purchase excess tobacco at auction platforms. * Action Required: Participate in the auctions and comply with Tobacco Board regulations.

Key Entities Referenced

Tobacco Board: A statutory body established by the Government of India to promote the development of the tobacco industry. flue cured virginia tobacco: A type of tobacco that is cured by artificial heat. State of Andhra Pradesh: A state in India where unauthorized cultivation of flue cured virginia tobacco has occurred, leading to a mismatch in supply and demand. Tobacco Board Act, 1975: An act of the Indian Parliament that establishes and governs the Tobacco Board. Central Government: The Union Government of India, which is taking measures to address the excess production of tobacco. Tobacco Fund: A fund to which registered growers contribute an amount of Rupees two per kilogram. Santosh Kumar Sarangi: Jt. Secy., the Joint Secretary who signed the notification. Ministry of Commerce and Industry: The ministry under which the Department of Commerce operates, responsible for the notification regarding tobacco regulations.
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Now, therefore, in exercise of the powers conferred by section 20A, read with clause (g) of sub- section (2) of section 8 of the Tobacco Board Act, 1975 (4 of 1975), the Central Government hereby authorises the Tobacco Board to admit from the date of publication of this notification in the Official Gazette and up to the 31st December, 2015, the registered traders and dealers of the Tobacco Board to purchase at its auction platforms in the State of Andhra Pradesh, the excess flue cured virginia tobacco produced by the registered growers and flue cured virginia tobacco produced by unregistered growers in the State of Andhra Pradesh, subject to the following conditions, namely:— (a) an amount of Rs. two per kilogram and seven and half per cent. of the proceeds of the sale (including a normal service charge of one per cent. of proceeds payable by growers) shall be contributed to the Tobacco Fund by every registered grower for the excess flue cured virginia tobacco produced by him or her up to the extent of fifteen per cent. of the quota authorised for 2014-15 crop season; (b) an amount of Rs. two per kilogram and fifteen per cent. of the proceeds of the sale (including a normal service charge of one per cent. of proceeds payable by growers) shall be contributed to the Tobacco Fund by every registered grower for the flue cured virginia tobacco produced by him or her over and above the limit of fifteen per cent. of the quota authorised and also by every unregistered grower for the flue cured virginia tobacco produced by him or her for 2014-15 crop season; (c) a copy of the Record of Rights in respect of tobacco crop for the year 2014 is to be furnished. [F. No. 5/15/2013-EP(Agri.-VI)] SANTOSH KUMAR SARANGI, Jt. Secy.¹Hkkx IIµ[k.M 3(ii)º Hkkjr dk jkti=k % vlk/kj.k 3 अअअअििििधधधधससससचचूूचचूू ननननाााा नई (cid:1)द(cid:3)ली, 3 िसत(cid:9) बर, 2015 ककककाााा....आआआआ. 2222333399997777((((अअअअ)))).—यत: , क(cid:13)(cid:14) सरकार इस बात स े संतु3 ह ै (cid:1)क ऐसी प8रि0थितया ं उ! पLन हो गई हX िजनके कारण जनिहत म (cid:13) यह आव4यक हो गया ह ै (cid:1)क त(cid:9)बाकू बोड (cid:20) अिधिनयम,,,,1975 (1975 का 4)))) (cid:21)ारा लगाए गए कुछेक (cid:25)ितबंध# म (cid:13) ढील (cid:25)दान क* जाए;;;; और,,,, यत:, क(cid:13)(cid:14) सरकार ने यह आव4यक समझा है (cid:1)क आ(cid:24)ं (cid:25)दशे रा(cid:28)य म (cid:13) पंजीकॄत उ!प ादक# क* अित8र, त $ल ू ,य ोड(cid:20) वज(िनया त(cid:9)बाकू तथा अपंजीÑत उ!प ादक# (cid:21)ारा उ! पा(cid:1)दत $लू , योड (cid:20) वज(िनया त(cid:9)बाकू क* िबI* त(cid:9)बाकू बोड (cid:20) के िन5द3 नीलामी मंच# स े क* जाए;;;; इसिलए,,,, अब,,,, त(cid:9)बाकू बोड (cid:20) अिधिनयम,,,, 1975 (1975 का 4) क* धारा 8 क* उप-धारा (2) के खंड (छ) के साथ प8ठत धारा 30 क* उप-धारा (1) (cid:21)ारा (cid:25)द: शि, तय# का (cid:25)योग करत े <ए,,,, क(cid:13)(cid:14) सरकार,,,, एत>ारा आं(cid:24) (cid:25)दशे रा(cid:28)य म (cid:13) उ, त अिधिनयम क* धारा 10 क* उप----धारा (1) के साथ प8ठत धारा 14क dh उप----धारा (1) के (cid:25)ावधान# के (cid:25)वतन(cid:20) म (cid:13) इस अिधसूचना के शासक*य राजप+ म (cid:13) (cid:25)कािशत होन े क* तारीख से 31 (cid:1)दसंबर,,,, 2015 तक के िलए ढील (cid:25)दान करती ह ै तथा पंजीÑत उ!प ादक# क* अित8र,त $लू ,य ोड (cid:20) वज(िनया त(cid:9)बाकू पैदावार तथा अपंजीÑत उ!प ादक# क* $ल ू , योड (cid:20) वज(िनया त(cid:9)बाकू पैदावार क* िबI* त(cid:9)बाकू बोड (cid:20) (cid:21)ारा (cid:25)ािधÑत नीलामी मंच# पर करन े क* अनमु ित (cid:25)दान करती ह।ै [फा.स.ं 5/15/2013----ईपी(एHी-VI)] सतं ोष कुमार सारंगी, संयु, त सिचव NOTIFICATION New Delhi, the 3rd September, 2015 S.O. 2397(E).—Whereas, the Central Government is satisfied that circumstances have arisen rendering it necessary in the public interest, to relax the restrictions imposed by the Tobacco Board Act, 1975 (4 of 1975); And, whereas, the Central Government considers it necessary to dispose of the excess flue cured virginia tobacco of the registered growers and flue cured virginia tobacco of unregistered growers at the designated auction platforms of the Tobacco Board in the State of Andhra Pradesh. Now, therefore, in exercise of the powers conferred by sub-section (1) of section 30, read with clause (g) of sub-section (2) of section 8 of the Tobacco Board Act, 1975 (4 of 1975), the Central Government hereby relaxes the operation of the provisions of sub-section (1) of section 10, read with sub-section (1) of Section 14A of the said Act in the State of Andhra Pradesh for the period commencing from the date of publication of this notification in the Official Gazette and ending on 31st December, 2015 and permits the sale of excess flue cured virginia tobacco crop of the registered growers and flue cured virginia tobacco crop of the unregistered growers at the auction platforms authorised by the Tobacco Board. [F. No. 5/15/2013-EP (Agri.-VI)] SANTOSH KUMAR SARANGI, Jt. Secy. Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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