Raw tobacco prices shoots-up in UP

Kanpur, June 17 (UNI) Following the agitation of traders over imposition of trade tax on tobacco related products, the prices of raw tobacco have sky rocketed in Uttar Pradesh.

A trade tax of 32.5 per cent was imposed on raw tobacco, cigarette, cigar and pan masala, while a tax of 12.5 per cent had been levied on Bidi from May 30.

''UP's biggest tobacco wholesale market, Kanpur's Ramganj area is donning a deserted look. The traders protest from the last 15 days, has brought a shortage of raw tobacco, following which prices of tobacco related products are proliferating,'' President of the tobacco merchant association K K Mishra said.

Raw tobacco is supplied in large quantity from Kanpur to various places in UP, including other states like Gujarat, Andhra Pradesh, Karnataka, Bihar and Delhi.

The traders, last week got assurance from the state institutional finance minister Nakul Dubey on the matter, but since no concrete step was initiated, the traders would again meet the minister.

The traders would stage a mass demonstration, if their demands were not fulfilled, Mr Mishra added.

The arrival of monsoon has posed another threat to the tobacco crop, which is lying in the fields.

Meanwhile, in the last few days, trade tax department has started an investigation and imposed tax on the seized tobacco products consignment.

UNI