The Hindu Business Line : Karnataka tobacco auctions disrupted

Tobacco auctions in Karnataka have come to a standstill since Monday, as the farmers are boycotting the floors because they are unhappy over the low prices. They have decided to shun the floors till December 5, according to Dr Y. Sivaji, President of the AP Tobacco Growers' Association.

In a statement issued here on Tuesday, he said the delay in Karnataka auction process would have a cumulative and adverse effect on Andhra auctions, which would begin usually sometime in January or February.

"We appeal to the Tobacco Board officials and the Government to intervene and settle the issue. It is highly regrettable that the trade is not honouring its commitments in Karnataka," he said.

Dr Sivaji said that the auctions in Karnataka had started this season with an average price of Rs 68 per kg and it had slumped of late to Rs 48 a kg. Arrivals in the initial stages used to be 12,000 bales on each floor and they had slumped to 2,000.

"The trade wanted a crop size of 100 million kg, but the Tobacco Board had fixed the size at 83 mkg. The actual production is estimated at 82 mkg. Even then, the trade is not honouring its commitment and letting down the farmers in Karnataka," he alleged.

He said the export scenario was bright and the international market conditions were also conducive and there was no need for the trade to depress prices. It should learn to honour its commitments. The Government and the board should act fast to break the impasse, he pleaded.

Till now, 33 mkg of tobacco has been sold in Karnataka against 39 mkg during the corresponding period last season, according to Dr Sivaji.