Tobacco Auctions in AP From Wednesday

Source from:  The Hindu Online 02/25/2010

Auctions for Flue Cured Virginia Tobacco will begin on 16 platforms of the Tobacco Board in Andhra Pradesh from Wednesday for an estimated produce of 215 million kg against an authorised crop yield of 170 million kg. Good demand for Indian tobacco in the International market following failure of crop in Zimbabwe and good export merchants plush with orders, clubbed by the large turnout of low-grade tobacco on the farms, the farmers and Tobacco Board officials expect a good price for the Brights and Middle Grades at the auctions. The Board Chairman J. Suresh Babu during a meeting with the growers from all the soil regions of Andhra Pradesh, in Guntur on Monday said a scientific formula of beginning the auctions at last season's average price for Bright Grades in each soil region would be adopted for the current auction season. The exports were about 70 per cent of the total Indian production, he observed. Traders and members of the Indian Tobacco Association will meet on Tuesday to convey their opinion on auctions and their rough requirements. While all these arrangements were being made, one of the major concerns for the farmers and Tobacco Board is the large quantity of FCV tobacco being sold/purchased outside the auction platforms. The Board Chairman, who got an extension for his term till April 19, said that vigilance squads were being sent out into different regions to catch hold of unauthorised sale/movement of tobacco. Auctions in Karnataka have been delayed enormously and till Saturday the farmers had sold 93.57 million kg in 126 days with an average price ruling at Rs.110.63 per kg against Rs.111.02 per kg recovered for the same quantum last season. Against 114 million kg sold last season, it was likely to cross 115 million kg this year and though auctions began at Rs.130 per kg it was likely to end at Rs.109 per kg average by March end. Enditem