India: Tobacco Auction Gathers Pace In AP

Source from:  Business Line 07/31/2018

Viriginia tobacco auction in Andhra Pradesh has gathered momentum again this week after some disruption and slowing down due to transporters’’ strike and GST issue during the past ten days.

According to Tobacco Board officials, so far, 85 million kg of tobacco has been sold on the floors in the State at an average price of Rs 134.66 a kg against 95 mkg at an average price of Rs 132 a kg during the same period last year.

Actual production in the State is estimated at 127 mkg against the authorised production of 136 mkg. The production has been less this year due to unfavourable conditions.

The best tobacco produced in the northern light soils of West Godavari is currently being sold at an average price of Rs 149 a kg against the average price of Rs 151 a kg last year. Its production is estimated at 47 mkg and so far 21 mkg has been sold.

Farmers have complained on many floors that the low grades are not fetching good prices, with the prices plummeting below Rs 80 a kg, but there has been been improvement during the past few days. It is expected that the auctions this season may take place till the last week of September.  Enditem