Virginia tobacco auctions in Andhra Pradesh have entered the last phase, with 151.79 million kg sold so far on the floors at an average price of Rs 119.72 a kg, and it is expected that the auctions will come to a close by the end of August or so. The average price by the same time last season was Rs 121.82 a kg.
The Tobacco Board authorised a crop size of 172 mkg in the State and there may be a surplus of 10-12 mkg, which is manageable, according to sources.
Bright grade turnout is more this season and so far, 81.36 mkg of bright grade tobacco has been sold on the floors at an average price of Rs 125.23 a kg (Rs 137.49 last season), besides 49.62 mkg of medium grade tobacco at an average price of Rs 121.99 a kg (Rs 123.54 last season) and 20.81 mkg of low grade tobacco at an average price of Rs 92.78 a kg (Rs 79.80).
There is a slump of more than Rs 10 a kg for brigt grade tobacco in comparison with last season, as the quantity of such tobacco is more.
In the southern black soils, 56.84 mkg of tobacco has been sold so far at Rs 113.45 a kg against Rs 100.11 last season, 52.47 mkg of tobacco has been sold in southern light soils at Rs 113.68 a kg against Rs 101.30 a kg and 39.54 mkg in the northern light soils at Rs 137.70 a kg against Rs 149.29 last season. In the northern black soils, 2.93 mkg of tobacco has been sold at Rs 106.95 a kg against Rs 105.11 last season.
Andhra CM lauds e-auctions
Andhra Pradesh Chief Minister, N. Chandrababu Naidu, who visited the Koyyalagudem tobacco auction floor in West Godavari district on Thursday, lauded the Tobacco Board for introducing electronic auctions and said it would pave the way for greater transparency and better returns to the farmer.
He advised tobacco farmers to strictly adhere to the crop size fixed by the board, as surplus crop would impact the prices adversely.
"You should realise that tobacco consumption is going down worldwide, and therefore the key for maximising the return to the farmer is to improve yields and quality of tobacco and also cutting down on costs at the same time. The Tobacco Board, farmers and the trade should strive together to achieve the objective," he said.
He said that he would make all efforts to make farming remunerative and "the promised loan waiver is only the first step in that direction."
Tobacco Board Chairman K. Gopal showed the Chief Minister around the auction floor.