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obacco farmers in Lombok, West Nusa Tenggara (NTB), say that low demand and a declining sales price for Virginia-variety tobacco are threatening their livelihoods.

The farmers, who are expecting big losses for this year’s harvest, are asking the provincial administration to intervene in the market.

This year’s harvest has brought little but grief to Lombok’s independent tobacco farmers. The sale price of Virginia tobacco currently ranges between Rp 3,000 (US 31 cents) and Rp 5,000 per kilogram, plummeting dramatically from between Rp 30,000 (US$3.30) and Rp 35,000 a kilogram in 2011.

“Last year, we could sell tobacco for Rp 3 million per kilogram, but the price has dropped to Rp 3,500 per kilogram,” Lalu Musdar, a farmer from Janapria, Central Lombok, said. “The companies are manipulating the prices as they wish. We want the governor to urge them to buy tobacco from us at a fair price.”

Musdar, who had planted Virginia tobacco on more than 1.3 hectares of his farm in Janapria, said he would suffer losses of up to Rp 70 million if he fails to sell his harvest.

Operational costs for growing tobacco this year have risen as sale prices have declined. Musdar said he rented 1.3 hectares to cultivate the tobacco for Rp 8 million, while his other costs have also increased.

The price of fertilizer, for example, has risen from Rp 200,000 to Rp 300,000 per quintal. Musdar said that he paid for 8 quintals to raise his crop.

Labor wages have also risen sharply, from Rp 15,000 last year to Rp 35,000 this year.

“If the price of tobacco is Rp 30,000 per kilogram, we might gain a little profit, but the price has plummeted. For our production expenses, we borrowed from the cooperative and loan sharks at a high interest rate,” Musdar said.

Tobacco farming is centered on three regencies on Lombok Island: Central, East and West Lombok. More than 16,373 hectares were dedicated to tobacco cultivation for 2012.

The farmers set a production target of 32,464 tons, which they had planned to sell to 21 partner companies.

However, five firms backed out of buying from the farmers, while several others reduced the size of their procurements, citing a drop in cigarette production. Another farmer, Fatahillah, urged the provincial administration to revoke the operational licenses of companies that failed to raise their prices for tobacco.

“The government has promised to do so previously, but it has not been realized as of now. Companies buy tobacco from farmers, but they buy it at far below standard prices,” Fatahillah said.

According to Fatahillah, the provincial governor should immediately push the tobacco buying companies to buy tobacco from the farmers at a higher price, as per NTB Bylaw No. 4/2006 on Cultivation and Virginia Tobacco-Farming Partnerships.

The bylaw stipulates that the governor has the right to arrange the local Virginia tobacco farming business.

Abdul Haris, the economic affairs assistant for the NTB provincial secretariat, said the administration had urged tobacco companies to buy from the farmers. However, Abdul said that the administration could not intervene on pricing.