Executive Summary:
These notifications, issued by the Central Government, address the excess production of flue-cured Virginia tobacco in Andhra Pradesh. The Tobacco Board is authorized to allow the purchase of excess tobacco from registered and unregistered growers until October 31, 2019. Additionally, certain restrictions imposed by the Tobacco Board Act of 1975 are relaxed to facilitate the sale of this excess tobacco.
Key Points / Main Content:
Authorization for Tobacco Purchase:
The Tobacco Board is authorized to admit registered traders and dealers to purchase excess flue-cured Virginia tobacco.
This applies to tobacco produced by both registered and unregistered growers in Andhra Pradesh.
The authorization is valid until October 31, 2019.
Contribution to the Tobacco Fund:
Registered growers must contribute to the Tobacco Fund for excess production.
For excess tobacco up to 10% of the authorized quota for the 2018-19 crop season, the contribution is ₹2 per kilogram plus 5% of the sale proceeds (including a 1% service charge).
For excess tobacco exceeding 10% of the authorized quota, the contribution is ₹2 per kilogram plus 15% of the sale proceeds (including a 1% service charge).
Unregistered growers must also contribute ₹2 per kilogram plus 15% of the sale proceeds (including a 1% service charge) for their tobacco produced in the 2018-19 crop season.
Documentation Requirement:
A copy of the Record of Rights for the 2018 tobacco crop must be furnished.
Relaxation of Restrictions:
The Central Government relaxes certain restrictions imposed by the Tobacco Board Act of 1975.
Specifically, the operation of provisions in subsection 1 of section 10, read with subsection 1 of section 14A, are relaxed.
This relaxation is in effect until October 31, 2019, in Andhra Pradesh.
The sale of excess tobacco from registered and unregistered growers is permitted at authorized auction platforms.
Impact Analysis:
Tobacco Board:
Impact: Authorized to allow the purchase and sale of excess flue-cured Virginia tobacco at its auction platforms in Andhra Pradesh.
Action Required: Implement the authorization, collect contributions to the Tobacco Fund, and oversee the relaxed restrictions on tobacco sales until October 31, 2019.
Registered Tobacco Growers:
Impact: Allowed to sell excess tobacco. Required to contribute to the Tobacco Fund based on the amount of excess production.
Action Required: Pay the required contribution to the Tobacco Fund and furnish a copy of the Record of Rights for the 2018 tobacco crop.
Unregistered Tobacco Growers:
Impact: Allowed to sell flue-cured Virginia tobacco. Required to contribute to the Tobacco Fund.
Action Required: Pay the required contribution to the Tobacco Fund and furnish a copy of the Record of Rights for the 2018 tobacco crop.
Registered Traders and Dealers:
Impact: Authorized to purchase excess flue-cured Virginia tobacco at the Tobacco Board's auction platforms.
Action Required: Participate in the purchase of tobacco at the auction platforms within the specified timeframe (until October 31, 2019).
Key Entities Referenced
Tobacco Board: A statutory body authorized to regulate the tobacco industry in India.
flue cured virginia tobacco: A specific type of tobacco that is regulated by the Tobacco Board.
Andhra Pradesh: A state in India where unauthorized tobacco cultivation has occurred.
Tobacco Board Act, 1975: The primary legislation governing the Tobacco Board and the regulation of the tobacco industry.
Central Government: The Union Government of India, which has the authority to regulate the tobacco industry and authorize the Tobacco Board's actions.
Tobacco Fund: A fund to which contributions are made by tobacco growers.
KESHAV CHANDRA: Joint Secretary who signed the notification.
Department of Commerce: The department under the MINISTRY OF COMMERCE AND INDUSTRY.
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4217 GI/2019 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
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[फा. सं. 5/3/2019-ईपी(एIी-VI)/भाग]
केशव चं(cid:14), संयु0 त सिचव
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
NOTIFICATION
New Delhi, the 16th August, 2019
S.O. 2954(E).—Whereas, 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 cultivation in
the State of Andhra Pradesh, causing a mismatch between the demand and supply position;
And, whereas, the Central Government is satisfied that it is necessary and expedient to authorise
Tobacco Board to allow the purchase of flue cured virginia tobacco and consider it appropriate to dispose of
the excess flue cured virginia tobacco crop of registered growers and the flue cured virginia tobacco crop 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 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 upto the
31st October, 2019, 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 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 rupees two per kilogram and five 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 upto the extent of
ten per cent. of the quota authorised for 2018-19 crop season;
(b) an amount of rupees 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 ten per cent. of the quota authorised and also by every unregistered grower for the flue cured
virginia tobacco produced by him or her for 2018-19 crop season;
(c) a copy of the Record of Rights in respect of tobacco crop for the year 2018 is to be furnished.
[F. No. 5/3/2019-EP(Agri-VI)/pt.]
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[फा. सं. 5/3/2019----ईपी(एIी-VI)/भाग]
केशव चं(cid:14), संयु0 त सिचव
NOTIFICATION
New Delhi, the 16th August, 2019
S.O. 2955(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 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 October, 2019, 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. 5/3/2019-EP(Agri-VI)/pt.]
KESHAV CHANDRA, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.