India Farmers Jubilant as Tobacco Prices Soar

Source from:  tobaccointernational.com 09/24/2008

New Delhi - Tobacco auctions in India reached a record high of Rs 134.40 per kg at the Jangareddi Gudem auction spot. Growers from the northern light soils (NLS) region of West Godavari received between Rs 110 and 125 per kg, the Koyyalagudem auctions reported a price of Rs 110, and those at Gopalapuram reported Rs 100. The prices offered this season are said to be the highest in the history of the Indian tobacco auctions. The average price for the highest quality tobacco was Rs 97.11 in the NLS region, Rs 84.23 in the Central Bright Soils (CBS) region, and Rs 81.86 in the Southern Light and Bright Soils regions. These prices are nearly double that of last season, where average prices reached Rs 47.50. Approximately 123.95 mn kg of tobacco has been sold, with low grade tobacco reaching prices of Rs 56.57. Some of the contributing factors to these high prices are the drastic production decrease in Zimbabwe, a reduction of nearly 80%, as well as a shortage from Brazil. Enditem