Leaf Prices Might Not Cover Cost of Production

Source from:  Tobacco Reporter 03/22/2012

Tobacco growers in the Prakasam District of Andhra Pradesh have decided to put pressure on the Tobacco Board of India in an attempt to obtain better prices for their leaf, according to a story in the Hindu quoting sources in the board. During the first 18 days of trading of this year's auctions, the growers sold about four million kg of leaf at an average price of Rs103.77 (US$2.05) per kg. F1 grade leaf fetched an average price of about Rs110 per kg, down from about Rs121 per kg last year. Bright grade leaf and medium grade leaf fetched an average price of Rs106.05 per kg and Rs94.14 per kg, respectively. T Ravi, honorary president of the Virginia Tobacco Growers' Welfare Association, said that farmers would not be able to cover even their costs of production if the present trend continued. Enditem