The Hindu Business Line : Tobacco auctions picking up in AP

THE tobacco auction process in Andhra Pradesh, still at an early stage, has picked up after initial irritants while those in Karnataka are nearing a close.

In an interview, Dr P. Dayachari, Chairman, Tobacco Board, said till now roughly 4 million kg of tobacco had been sold on the Andhra floors at an average price of Rs 46 a kg.

However, it was too early to gauge the trading trends. Bright grades were being marketed in the initial phases. Auctions were in progress on 17 floors in the State and the process would begin on the remaining four floors anytime after March 17 in the last phase.

Dr Dayachari said the auctions in the State had begun during the last week of January. But a few problems had cropped up in Prakasam district as farmers were not content with the prices offered and the process had come to a halt for sometime. ``The problem has been sorted out with the initiative of the board and both parties have come to an understanding on the prices. Auctions have recommenced on those floors and there is no hitch now,'' he said.

He said the farmers in Andhra Pradesh had exercised discipline and stuck to the crop size fixed by the board and the production this season would be in the range of 103-106 mkg. ``All indications are that there would not be any surplus in AP this season. It is really laudable that the farmers have co-operated with the board and this will have a beneficial impact on the prices.''

Referring to Karnataka, he said the auctions in that State were coming to a close and till now 63 mkg of tobacco had been sold at an average price of Rs 43 a kg. ``The stocks in Karnataka have been exhausted and the process is almost over.''

On the question of market intervention, he said the board at its recent meeting in Hyderabad had formulated proposals to that effect and submitted them to the Union Commerce Ministry. A decision by the Ministry was awaited, he said.

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