India: AP Tobacco Auctions to Begin on Feb 15

Source from:  Hindu Business Line 01/13/2014

Tobacco auctions in Andhra Pradesh are scheduled to begin from February 15, and all efforts are being made to close the auctions in Karnataka by that date, according to a press release.

The decision was taken after a recent meeting the board chairman K.Gopal held here with representatives of growers and officials. The chairman said the Tobacco Board had fixed a crop size of 172 million kgs for the current year in Andhra Pradesh based on the indications given by the Indian Tobacco Association.

Initial estimates put Andhra Pradesh's tobacco crop at 187 million kgs.

The area planted in Andhra Pradesh was 122,695 ha. for 2013-14. Gopal suggested to farmers to produce flavourful tobacco by taking measures to improve the quality of semi flavourful tobacco as in other competing countries. Top priority should be given for proper grading, curing, bulking and elimination of pesticide residues for better prices on the floor.

He also advised farmers to use only such pesticides as advised by an authorised agency like the Central Tobacco Research Institute at Rajahmundry.

He said the reasons for price fluctuations in auctions were surplus crop, lengthy period of auctions, and carryover stocks. He emphasised the need for early closure of auctions in both AP and Karnataka as colour deterioration and weight loss in tobacco can be stopped; loans can be repaid early and farmers can plan for the next crop. While interacting with the Indian Tobacco Association and trade members, he stressed the need to close the Karnataka auctions as early as possible, at least by February 15. Trade members were requested to enhance participation in the auctions and maintain consistency in buying. Enditem