Executive Summary:
This notification authorizes the Tobacco Board to allow the purchase of excess flue-cured Virginia tobacco from registered and unregistered growers in Karnataka due to a supply/demand mismatch. It also relaxes certain restrictions under the Tobacco Board Act of 1975 to facilitate the disposal of this excess tobacco. This authorization is valid until March 31, 2020.
Key Points / Main Content:
Authorization and Scope:
* The Tobacco Board is authorized to allow registered traders and dealers to purchase excess flue-cured Virginia tobacco in Karnataka.
* This includes tobacco produced by both registered growers exceeding their authorized quantity and unregistered growers.
Financial Contributions:
* Registered growers must contribute ₹2 per kilogram and 5% of sale proceeds (including a 1% service charge) to the Tobacco Fund for excess tobacco up to 10% of their authorized quota for the 2019-2020 crop season.
* Registered growers exceeding 10% of their authorized quota and unregistered growers must contribute ₹2 per kilogram and 15% of sale proceeds (including a 1% service charge) to the Tobacco Fund for the 2019-2020 crop season.
Documentation:
* A copy of the Record of Rights for the 2019 tobacco crop must be furnished.
Restriction Relaxation:
* The operation of subsection 1 of section 10 and subsection 1 of section 14A of the Tobacco Board Act is relaxed in Karnataka.
* This relaxation permits the sale of excess flue-cured Virginia tobacco at Tobacco Board authorized auction platforms.
* The period of relaxation is from the date of notification publication until March 31, 2020.
Impact Analysis:
Central Government:
* Impact: Informed of the tobacco situation and authorizes actions by the Tobacco Board.
* Action Required: Ensure Tobacco Board adheres to the conditions outlined in the notification.
Tobacco Board:
* Impact: Authorized and directed to oversee the purchase and disposal of excess tobacco, collect funds, and ensure compliance.
* Action Required: Implement the authorization, manage auction platforms, collect contributions to the Tobacco Fund, and monitor adherence to regulations.
Registered Growers:
* Impact: Allowed to sell excess tobacco but must contribute to the Tobacco Fund based on the excess amount.
* Action Required: Pay contributions to the Tobacco Fund as stipulated, furnish the Record of Rights for the 2019 crop, and sell excess tobacco at authorized auction platforms.
Unregistered Growers:
* Impact: Allowed to sell tobacco but must contribute a higher percentage of sale proceeds to the Tobacco Fund.
* Action Required: Pay contributions to the Tobacco Fund as stipulated and sell tobacco at authorized auction platforms.
Registered Traders and Dealers:
* Impact: Allowed to purchase excess tobacco at the Tobacco Board's auction platforms in Karnataka.
* Action Required: Purchase excess tobacco at the designated auction platforms.
Key Entities Referenced
Tobacco Board: A statutory body established by the Government of India to promote the development of the tobacco industry. It is authorized in this notification to allow the purchase and disposal of excess flue cured virginia tobacco.
flue cured virginia tobacco: A type of tobacco that is cured by heat in a closed barn.
Karnataka: A state in India where unauthorized cultivation of flue cured virginia tobacco has caused a mismatch between demand and supply. The Tobacco Board is authorized to manage tobacco sales in this state.
Tobacco Board Act, 1975: An act of the Parliament of India that established the Tobacco Board and defines its powers and functions. Section 20A, section 8, section 30, section 10 and section 14A of the act are mentioned in the notification.
Central Government: The executive authority of the Union of India, which is issuing this notification and authorizing the Tobacco Board to take specific actions.
Tobacco Fund: A fund to which registered growers contribute for excess flue cured virginia tobacco produced.
Diwakar Nath Misra: Joint Secretary, Ministry of Commerce and Industry, the signatory of the notification.
Ministry of Commerce and Industry: The ministry under which the Department of Commerce operates. The notification is issued by this ministry.
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5581 GI/2019 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
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[फा.स.ं 5/3/2019-ईपी(एPी-VI)/भाग]
(cid:4)दवाकर नाथ िमTा, संयु(cid:9)त सिचव
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
NOTIFICATION
New Delhi, the 24th October, 2019
S.O. 3873 (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 Karnataka, 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 Karnataka;
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 March, 2020, the registered
traders and dealers of the Tobacco Board to purchase at its auction platforms in the State of Karnataka, the excess flue
cured virginia tobacco produced by registered growers and flue cured virginia tobacco produced by unregistered growers
in the State of Karnataka, 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 upto the extent of ten per cent. of the quota authorised
for 2019-2020 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 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 for 2019-2020
crop season;
(c) a copy of the Record of Rights in respect of tobacco crop for the year 2019 is to be furnished.
[ F.No. 5/3/2019-EP(Agri-VI)/Pt.]
DIWAKAR NATH MISRA, Jt. Secy.
अअअअििििधधधधससससचचूूचचूू ननननाााा
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[फा.सं. 5/3/2019-ईपी(एPी-VI)/भाग]
(cid:4)दवाकर नाथ िमTा, संयु(cid:9)त सिचव
NOTIFICATION
New Delhi, the 24th October, 2019
S.O. 3874(E) .ÑÑÑÑ 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 Karnataka;
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 and sub-section (1) of section 14A of the said Act in the State
of Karnataka for the period commencing from the date of publication of this notification in the Official Gazette and
ending on 31st March, 2020, 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.]
DIWAKAR NATH MISRA, 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.