INDIA
Tobacco auctions in Prakasam district in the Ongole region, got off on an encouraging note this year as bright grade tobacco attracted buyers at a high price of Rs161 per kg in the Ongole II auction platform.
Tobacco Board Southern Black Soil (SBS) regional manager, G. Umamaheswara Rao said that a quantity of 11,795 kg offered by farmers was lapped up by 11 traders who took part in the e-auction on the inaugural day, offering a healthy price of Rs159.79 per kg.
In the Southern Light Soil (SLS) platforms, as many as eight traders lifted 8,583 kg of F1 grade tobacco by offering an average price of Rs159.17 per kg, according to SLS regional manager, G. Ratnasagar.
Ongole II auction platform ryots’ wing president V.V. Prasadn said that the average price realized should not be less than Rs135 per kg for them to break even at a time when tobacco production drastically fell to about 55 million kg in the traditional growing areas coming under the SLS and SBS auction platforms as against the crop size of 82 million kg.
Grade out-turn this year was severely affected due to a prolonged dry spell and parasitic weed, Orabanche cernua.
Medium grade accounted for a maximum of 50% followed by bright grade (30%) and low grade (20%). The Tobacco Board was asked to ensure that farmers got an average price of Rs145 per kg for medium grade and not less than Rs100 per kg for the low grade for them to continue growing tobacco next year.