Flue-cured tobacco growers in the Indian state of Andhra Pradesh were said to have been paid ‘fairly good’ prices during the first two days of this season’s auction sales, which opened on March 8 in the traditional growing areas of the Southern Light Soil region.
According to a story in the latest issue of the BBM Bommidala Group newsletter, growers were paid an average of Rs160 per kg during the early sales.
But prices are expected to increase once sales come to an end in the other flue-cured-tobacco state, Karnataka, towards the end of this month or early next month.
The auctions began on an optimistic note for growers in part because international companies are being allowed this season to participate directly in the sales, after registering as exporters or dealers.
Growers are looking for ‘remunerative’ prices of Rs176 per kg for bright grades and a minimum of Rs100 per kg for low-grade leaf.
The optimism has been caused also by the quality of the crop, which is said to comprise a majority of bright grades.
The Tobacco Board of India set the authorized crop size for Andhra’s 2017-18 season at 136 million kg.
Sales in the Southern Black Soil region of Andhra are due to start on March 19.
Meanwhile, in Karnataka, the average price stood at Rs150 per kg with more than 88 million kg sold against an authorized crop of 99 million kg.
Following 141 days of auctions, growers had sold 18.42 million kg of bright-grade leaf for an average of Rs161.97 per kg, 41.26 million kg of medium-grade tobacco for an average of Rs148.29 per kg, and 28.58 million kg of low-grade leaf for an average of Rs115.02 per kg.
Upbeat in Andhra Pradesh
