India: Lower Crop, Quality Boost Karnataka Tobacco Prices

Source from:  Business Line  10/18/2012

Tobacco prices for bright grade are holding around Rs 140 a kg at majority of the auction platforms in Karnataka. "As the auction enters the 15th day in the State, prices are steady and ruling high due to improvement in quality of the crop this year," K.N. Vishakantaiah, Tobacco Board Regional Manager, told Business Line. Prices are ruling 15 per cent higher than last year and about 30 buyers/platform are active. So far, the Tobacco Board has marketed 7,564 bales at an average price of 120.53 a kg.

According to B.V. Javare Gowda, President, Karnataka Tobacco Growers Association, prices are better than last year due to lower crop. But growers' expectation is not matching the current market price as all farm inputs have become dearer. The Tobacco Board is planning to conduct mock e-auction in few platforms in Karnataka on October 19. The Board Chairman is visiting the tobacco-growing region in the State during October 18-19 to interact with the growers and to participate in the mock drill. Enditem