India: Tobacco Growers Upbeat as Market Remains Buoyant

Source from:  The Hindu 03/21/2016

E-auctioning of tobacco, the principal commercial crop in the drought-prone Prakasam district progressed on a promising note on Southern Light Soil(SLS) and Southern Black Soil (SBS) platforms on Friday.

The bright grade tobacco fetched a high price of Rs. 151 per kg in Tangutur auction platform as 14 traders competed with each other to lap up the farmers poroduce, SBS Regional Manager G. Bhaskar Reddy said overseeing the auctions from Ongole.

"The market sentiment is positive unlike last year," he said referring to the farmers realising an average price of Rs.141.13 per kg on the 0.57 million kg of tobacco marketed on the SBS platforms so far. The average price realised on the SLS auction platforms was a tad lower at Rs.139.40 per kg on the 2.05 million kg marketed so far this season, SLS Regional Manager G.Ratnasagar said.

Meanwhile, TDP farmers wing district president K.Venkaiah urged the Tobacco Board to ensure at least Rs. 160 per kg for bright grade tobacco.

"Farmers have stuck to the crop size fixed by the Tobacco Board. Now it is the turn of the crop regulator to ensure an average price of at least Rs. 140 per kg so that the ryots can make good the heavy loss incurred last year," he added.

Now that the auctions are over in Karnataka, where the farmers had got an average price of Rs.135.24 per kg on the 71.95 million kg marketed, both the manufacturers and exporters are sure to make a beeline to the auction platforms in Prakasam district in the coming weeks, observed former Tobacco Board member M.Bangarababu and asked the ryots to wait for the market price to go up to Rs. 160 per kg.

Farmers will be in the safe side if they offload at least 25 per cent of their produce at the prevailing best market condition as there may be a market correction as the trading gathers momentum, according to Indian Tobacco Association sources. Enditem