A quantity of 109.37 million kg of tobacco has been sold so far on the 19 auction floors in Andhra Pradesh at an average price of Rs 122.25 against Rs 98.67 per kg realised during the same time last season, according to Tobacco Board sources here.

The highest prices were as usual realised on the five auction floors in the northern light soils of West Godavari — two floors in Jangareddi gudem, Koyyalagudem, Gopalapuram and Devarapalli. A quantity of 36.22 million kg of tobacco was sold at an average price of Rs 148.65 per kg as against last season’s Rs 115.25. Tobacco grown on the five floors is always in demand and the farmers command the best prices on a regular basis.

However, farmers in East Godavari district (Torredu auction floor near Rajahmundry) are an unhapply lot as only 1.72 million kg of tobacco has been sold so far at an average price of Rs 98.41 a kg against last season's Rs 83.34 per kg. Farmers on the floor complain they are unable to recoup the cost of cultivation at the present prices.

On the remaining floors in the southern light soils and southern black soils, the prices are decent. In the southern black soils, 36.56 million kg of tobacco has been sold at an average price of Rs 109.58 against Rs 85.16 last year and in the southern light soils 34.87 million kg has been sold at an average price of Rs 109.30 a kg against Rs 92.36 last season.

Electronic auction has been introduced in Andhra Pradesh this season and Tobacco Board officials claim that it has helped in securing better prices for the farmer. Actual production in the State is estimated at 167 million kg against a crop size of 170 million kg fixed by the Tobacco Board. There is no excess production in the State and that has also helped prices on the floors, it is said.

>sarma.rs@thehindu.co.in

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