High prices at slow sales
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.
Flue-cured tobacco auctions that began in the Indian state of Andhra Pradesh in early March have yet to gather pace, according to a story in the latest issue of the BBM Bommidala Group newsletter.
After 60 days of marketing 24.77 million kg of tobacco had been sold at an average price of Rs163 per kg.
The story indicated that by the same stage of last year’s auctions, double that quantity of tobacco had been sold, though there was no mention of what the average price had been.
However, a newsletter story from last year had it that after about 40 days of marketing, 21.57 million kg of tobacco had been sold for an average price of Rs145.53 a kg; so it would seem that prices this year are running about 12 percent above those of the previous year.
The increase in price has occurred possibly because this year 16 million kg of the tobacco sold so far is said to be bright leaf grades.
Despite the higher prices, growers are apparently worried at the slow pace of sales and are calling on the Chief Minister to hold a meeting with traders.
Growers’ concerns will have been heightened by the fact that the crop on offer is not a big one. The authorised crop size was 136 million kg, but the production estimate puts it at about 125 million kg.
