The Tobacco Board has fixed the crop size in Andhra Pradesh for the 2012-13 season at 162 million kg, the same as during the last season, and the trade body, the Indian Tobacco Association, has also requisitioned the same quantity.
Sources said there may be an excess of 100 million kg of Virginia tobacco in the international market on the higher production in Brazil, Zimbabwe and the US. Farmers in those countries are getting better prices and therefore the production committee of the Tobacco Board has decided that the crop size in Andhra Pradesh should be pegged at the same level as during the last season. The ITA is also satisfied with the crop size.
However, the production in Karnataka during the current season may be lesser as the monsoon has not been encouraging. The Tobacco Board has fixed the crop size in that State at 98 million kg, though actual production may not even touch 90 million kg. Therefore, there may be a deficit of roughly 10 million kg in that State.
In Karnataka, it may be noted, tobacco is a monsoon crop and now it is a standing crop. The season begins much later in Andhra Pradesh, as tobacco is a late kharif (or early rabi) crop in the State.
Andhra Pradesh auctions: Meanwhile, tobacco auctions in Andhra Pradesh are in the concluding phase and may be closed by the end of the week, according to sources in the board. So far, 159 million kg of tobacco has been sold on the auction floors in the State at an average price of Rs 95.70 a kg. Only 3-4 million kg of tobacco is yet to be sold. There has been no excess production in the State.
The maximum price of Rs 153 per kg of tobacco has been realised on the West Godavari floors in the northern light soils. Roughly, 56 million kg of tobacco has so far been sold on the five floors in West Godavari at an average price of Rs 117.51 a kg. West Godavari grows the best tobacco in the State.