Trade Blamed for Karnataka Price Slump

Source from:  Tuesday, October 10, 2006 tobaccoreporter.com 10/13/2006

The president of the Andhra Pradesh Tobacco Farmers' Association, Dr Y. Sivaji, is crying foul as tobacco prices drop on the Karnataka auction floors, according to a report in The Hindu Business Line. According to Sivaji, the auctions started on a bright note on September 6 with tobacco attracting an average price of Rs63.46 per kg, which encouraged farmers to deliver their leaf quickly – at the rate of 12,000 bales per day. But since then, prices have fallen by Rs5-15 per kg, depending on grades, and Sivaji is blaming the trade since, he said, there was no carryover stock from last year and since the international marketing situation was encouraging.