K'taka tobacco growing areas better in socio-eco development

Tobacco growing districts of Mysuru and Hassan in Karnataka are performing better than other regions of the state, which are cultivating alternative crops, in terms of socioeconomic infrastructure, per capita income and expenditure, says a study.

“Indicators like per capita income, monthly per capita expenditure (MPCE), gross district domestic product (GDDP), socio-economic infrastructure and others are also better in Mysuru and Hassan compared to the non-tobacco growing districts,” as per the study.

The study ‘Tobacco Economics in India: The Voice of Farmer and Other Stakeholders’ was jointly conducted by Assocham and Thought Arbitrage Research Institute (TARI). Mysuru and Hassan together constitute about 75 per cent of tobacco production in Karnataka. Mysuru accounts for about 58,700 tonne and Hassan about 10,800 tonne.

In terms of the area covered, these two districts have the highest concentration at 95,100 hectare — around 80 per cent of the area. The wealth indicators for Mysuru and Hassan are significantly superior compared to the non-tobacco producing districts, said the Assocham-TARI study released here. Besides, these two districts also lead in district GDP figures, with significant contribution due to tobacco.

“Mysuru and Hassan districts have better access to water and sanitation facilities along with higher coverage of electricity and LPG connections while Chamarajnagar and Chitradurga districts lag in terms of such infrastructure facilities,” said D S Rawat, Secretary General, Assocham while releasing the study.

“Tobacco cultivation is critical for the rural economy in these districts and is one of the reasons for agricultural activities to have remained buoyant and sustained during the recent worldwide economic crisis,” Rawat said.

The likely immediate economic impact of decline in tobacco industry in these districts would be substantial as, in these regions farms tend to be small, production costs are high, and relatively few alternatives are available to tobacco, the study said. Drastic and immediate reduction of the tobacco growing from these districts may lead to dramatic changes in structure of overall farming, employment, income and socio-economic balance of the districts, it added.

On the overall tobacco sector, the study said India, which has ratified the Framework Convention on Tobacco Control, will lose their market to Zimbabwe, Malawi and Indonesia and face the prospect of seeing millions of job losses, livelihood impact and forex losses.

If India withdraws from this market wholly or partially, the market will be catered by countries which are not bound by any convention and Indian tobacco growers, in the absence of alternative livelihood would also lose the benefit that accrues from exports, it said. “We need to adopt a balanced and well calibrated approach in our policy formation in this regard,” Rawat said.