INDIA
After having grown tobacco after a bad cropping season in the last two years, farmers in Prakasam district are now panicking that there will be a drop in the market for low and medium grade tobacco, and have asked the Tobacco Board to intervene.
The farmers are worried because the average price for low-grade varieties has fallen to about Rp85 per kg, and the “no-bid rate” that results in 25-30% of their tobacco taken to auction platforms not being picked up.
Despite being promised an average price of Rp160 per kg for bright grade, Rp145 per kg for medium grade, and Rp100 per kg for low-grade varieties at the beginning of the season, it seems now that an average price of Rp135 may be unattainable.
Virginia Tobacco Growers Welfare Association president, Ch. Seshaiah, said that the Tobacco Board should bring to auction platforms all the registered manufacturers and exporters to lift market sentiment as the crop this year is less of bright grade and more of medium and low-grade varieties. Medium and low-grade varieties account for 30% and 40% respectively of the total production this year due to hostile weather conditions coupled with rampant infestation of the parasitic Orabanche cernua weed.