Andhra Tobacco Auctions Fetch Better Prices This Year

Source from:  tobaccoreporter.com Tuesday, July 04, 2006 07/05/2006

Tobacco farmers in Andhra Pradesh (AP) received INR10 more per kg for their tobacco than they did last season--and the prospects for the next season too seem bright, as currently there is good demand for Indian tobacco in the international market. In the AP auctions this season, which concluded on June 1, 145.2 million kg of tobacco was sold at an average price of INR46.30 a kg, against 153 million kg sold last season at an average price of INR36.16 a kg. Dr Y. Sivaji, president of the AP Tobacco Growers' Association, attributed the better prices to slump in crop production in the international market. "In Zimbabwe, the European Union and Brazil, it is estimated that there is a slump of more than 100 million kg. China is also not dumping tobacco into the international market as in the past. Dr Sivaji said the trade should seize the opportunity and boost quality exports instead of "resorting to undercutting as in the past." Enditem