Tobacco Board Urges Dealers to Step up Andhra Pradesh Leaf Purchases

Source from:  tobaccoreporter.com 04/20/2005

The Tobacco Board of India has asked leaf merchants to step up their tobacco purchases in Andhra Pradesh, reports the New Delhi Financial Express. After three months of sales, buyers have purchased fewer than 20 million kg of the state's 135 million kg crop. Tobacco prices have been lower than those offered during the corresponding periods of the 2004 and 2003 selling seasons, according to the Tobacco Board. During the first two months of auction, about 9.19 million kg of Andhra Pradesh tobacco were sold at an average price of INR44.10 per kg (INR1=US$0.02), compared with 12.73 million kg at INR44.36 per kg in 2004 and 12.73 million kg at INR45.45 in 2003. However, lately, the average price has fallen to INR41.88 per kg. According to trade sources, the major tobacco traders were still in Karnataka at the end of March, and it may take time for them to enter Andhra Pradesh in a big way. Enditem