Prices increased in India
The extension of the auction season has upset the delicate balance between the previoulsy dominant growers of Andhra Pradesh and the Johnny-come-latelys of Karnataka.
The average price paid to growers for flue-cured tobacco after 25 days of sales on auction floors in the Indian state of Andhra Pradesh was increased by about 1.5 percent on that at the comparable stage of the 2017 sales season, according to a story in the latest edition of the BBM Bommidala Group newsletter.
After the sale of 2.97 million kg of flue-cured tobacco this year, the average price stood at Rs157.31 per kg, up from Rs154.93 per kg last year following the sale of a similar quantity.
Sales which began on March 8, have been held at centers within the Southern Light Soil and Southern Black Soil areas.
They are due to open at the state’s East- and West-Godavari platforms tomorrow.
The Tobacco Board of India increased the authorized Andhra Pradesh crop size to 136 million kg for the 2017-18 season, but production is estimated at 125 million kg.
Meanwhile, flue-cured tobacco auctions are winding down in the state of Karnataka, where 104.79 million kg had been sold after 162 days of sales that started on September 8.
The Board authorized a crop of 99 million kg, but it is expected that it will end up at just over 106 million kg.
The newsletter said that the average price in Karnataka, at Rs139.67 per kg, was up on that of the previous season, but it did not mention by how much.
