The Hindu Business Line : AP tobacco auctions fetch record Rs 1,401 cr

Virginia Tobacco auctions that concluded this week fetched a record Rs 1,401 crore for farmers in Andhra Pradesh and for the first time in the history of the crop the average price crossed the $2 a kg barrier.

“This has been a ‘watershed year’ in farm prices, export volumes, and foreign exchange earnings in the Indian Tobacco industry,” said Mr J. Suresh Babu, Chairman of the Tobacco Board. He said the total earnings on the auction floors in the State rose to Rs 1,401 crore this season, with average price shooting up from Rs 47.47 a kg last season to Rs 84.73 and the highest bid touching Rs 140 a kg. There was a marginal decrease in the total quantum auctioned on the platforms from 171.9 million kg last year to 165 million kg this year. However, Indian tobacco, which is internationally seen as an inferior quality filer tobacco, could establish that it was not so; the export volumes grew by 12 per cent and in terms of value there was a growth of 42 per cent.

Electronic auctioning

The introduction of electronic auctioning system at Jangareddyguem auction platform was yet another milestone this season, he added. Dr Y. Sivaji, President of the AP Tobacco Growers’ Association, expressed happiness over the record prices. He, however, cautioned farmers that enthused by the prices they should not plant excess crop next season. “In fact, there is a huge demand for Indian tobacco in the international market and next season the average price should go up to $3 a kg as in Brazil. It has been proved conclusively that Indian tobacco is not inferior to any other tobacco in the world,” he said.

Related Stories:
AP asks for 1% agri cess on tobacco crop

More Stories on : Tobacco | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
MCX to trade aviation fuel futures from July 7

Spot rubber stays weak

Palm oil may test resistance, dip

AP tobacco auctions fetch record Rs 1,401 cr