Tobacco Price Flares

Source from:  siasat.com Guntur, February 23 02/27/2008

Tobacco got a record price of Rs 72 per kg in the auction conducted by the Tobacco Board on Thursday. Tobacco auction at Podili I and II, Kandukuru I and II, Kaligiri and DC Palli platforms began on February 1. The board started tobacco auction at Jangareddygudem I and II, Devarapalle, Koyyalagudem, Gopalapuram, Ongole I and II, Velampalle I and II, Tanguturu and Kondepi centres on Thursday. At the start of auction, tobacco grown in northern light soil was quoted at Rs 62 per kg. Later, it touched the record price of Rs 72 per kg. Last year, tobacco growers got a mere Rs 48 per kg. About 7.5 million kg tobacco has been sold at the auction platforms so far. The rise in tobacco price was attributed to lifting of ban on import of Indian tobacco by China and decline in the crop yield in the world. Over 87 million kg tobacco was harvested in Karnataka against the crop size of 95 million kg. Andhra Pradesh is expected to produce 164 million kg against the crop size of 158 million kg this season. Due to the initiative taken by Tobacco Board Chairman Suresh Babu, traders participated in the auctions without fixing any price ceiling. Suresh Babu said tobacco farmers would get remunerative price for their produce if the same trend continues at all the auction centres in the State. Enditem