Good prices in Andhra

Flue-cured leaf tobacco prices at auctions in the Indian state of Andhra Pradesh have been running high so far this year and sales have been progressing briskly, according to a story in the latest issue of the BBM Bommidala Group newsletter

After about 40 days of marketing, the story said, 21.57 million kg of tobacco had been sold for an average of Rs145.53 a kg.

The top price had been Rs174 per kg.

Bright grades were fetching Rs158.38 per kg while medium grades were selling for Rs138 per kg.

Earlier this year, growers told the Tobacco Board that the average price should not go below Rs135 per kg if they were to ‘scrape through this year after two successive years of heavy losses’.

The Board was urged to ensure that growers received Rs160-170 per kg for bright-grade leaf and at least Rs120 per kg for low grades.

The Farmers’ Association said that the Board should take into consideration the challenging conditions under which the crop was raised – conditions that included a prolonged dry spell.

Andhra’s crop is expected to total about 105 million kg this year, well short of the 130 million kg that were authorised.

According to the Indian Tobacco Association, the total crop is expected to comprise 40 percent bright grades, 25 percent medium grades, with low grades making up the remainder.