India: E-auction Launch Boosts Tobacco at Karnataka Sale

Source from:  Hindu Business Line  12/07/2012

Tobacco prices have shot up by around 10 per cent on Karnataka auction platforms after the introduction of e-auction system.
 
Tobacco prices which were trading around Rs 130-140 a kg for bright grades are now trading at around Rs 150.

 

According to K.N. Vishakantaiah, Regional Manager, Tobacco Board, Karnataka, "This part of the year, crop quality is still good and quantity of bright grade entering the auction platforms is driving the prices."
 
"Prices at the auctions are truly reflecting the market's demand. The introduction of e-auction has brought in transparency and has eliminated the collusion between traders and board officials," said an office bearer of the Federation of Karnataka Tobacco Growers Association.
 
"The e-auction system has benefited the small and medium farmers the most. Despite their low volumes on the platform they are getting good price, he added.
 
Of the quantity marketed, bright grades comprised 29.33 per cent and traded at an average price of Rs 139.30. Medium grades comprised 46.54 per cent traded at Rs 128.42 and the rest traded at Rs 24.13.
 
Following are the platform-wise auction details as on December 5:

H.D Kote quantity marketed 5.73 lakh kg (average price Rs 136.72); Hunsur-2: 5.28 lakh kg (Rs 140.65); Hunsur-3: 8.47 lakh kg (Rs 137.84); Hunsur-64: 9.73 lakh kg (Rs 139.66).

Periyapatna-4: 8.13 lakh kg (Rs 139.04); Periyapatna-5: 7.74 lakh kg (Rs 140.57); Periyapatna-6: 4.11 lakh kg (Rs 140.32); Kampalapura-61: 12.55 lakh kg (Rs 139.63); Kampalapura-62: 5.88 lakh kg (Rs 139.51); Ramanathpura-7: 5.12 lakh kg (Rs 139.78) and Ramanathpura-63: 6.46 lakh kg (Rs 138.84). Enditem