The Hindu Business Line : Tobacco growers may get better prices

Notwithstanding the impact of both excess and deficit rains on the current tobacco crop in different areas of Karnataka, growers are upbeat about fetching better prices for their produce this year on estimates that the crop size would have shrunk by 6-8 per cent. The tobacco auctions are set to begin on September 6 in almost all the platforms.

The Tobacco Board had fixed a crop size of 84 million kg for Karnataka this year, up 10 per cent from the previous year's 76 million kg. As the commodity is regulated, the Board authorises the crop size every year. The 84 million kg crop size authorised by the Board is lower than the 105 million kg demanded by the trade led by the Indian Tobacco Association and the 100 million kg sought by the farmers.

Excess Rains

Major growing areas in Mysore district like Periyapatna have witnessed excess rains this monsoon, which in turn has reduced the crop size. At the same time, deficit rains in areas like Hunsur also had an impact on the output, growers said.

Coupled with this the outbreak of diseases like `fusarium wilt' had affected the output and the quality this year, said Mr Javare Gowda, the Member Tobacco Board and President of the Karnataka FCV Tobacco Growers' Association.

Mysore Tobacco

Flue Cured Virginia (FCV), known for its lower nicotine and tar content is the widely grown variety in the State and has a major demand in the international market. The Karnataka Light Soil tobacco, also known earlier as Mysore tobacco, is in great demand the world over, because it is considered a neutral filler, which can go into different blends, he said.

Mr Gowda estimates the current crop size to be lower by 5-6 million kg and expects the average price this auction to be upwards of Rs 65 per kg, much higher than the previous year. Farmers in Karnataka had realised an average price of Rs 48.06 kg last year, when about 82 million kg was grown in the state.

Further, Mr Gowda believes that the average prices would be higher in Karnataka this year as farmers in Andhra Pradesh have realised an average price of Rs 58 per kg in the auctions concluded three months ago. With an expected shortfall in Karnataka, where the produce is of superior quality, the prices should be higher, he said.