Tobacco prices are fluctuating between Rs 5 and Rs 10 a kg on a weekly basis at different auction platforms for the last one month.

The key reason attributed for the fluctuation is that the crop size is huge at around 130 million kg against authorised crop size fixed at 97.95 million kg and also when big tobacco companies descend on the market prices move up sharply and when small and medium companies enter the prices are correcting.

?This fluctuation has led to a few farmers holding on the crop confused as to when to sell their produce,? said Mr T Vikram Raj Urs, a tobacco grower and secretary Federation of Karnataka Tobacco Growers' Association farmer.

At the end of the 124-day of auction (March 7), about 83.67 million kg (8.24 lakh bales) of FCV tobacco variety have been marketed in Karnataka, with an average price of Rs 96.10 a kg.

Of the total quantity marketed, bright grades comprised of 16 million kg with an average price of Rs 119.35. Medium grades comprised of 43 million kg, were traded at an average price of Rs 103.61/kg. Low grades, comprised of 25 million kg, were traded at an average price of Rs 68.18/kg.

Following are platform-wise auction details, as on March 7:

H.D.Kote 79,766 bales marketed (7.64 million kg), average price Rs 92.87/kg. Hunsur-1 47,786 bales (4.89 million kgs), Rs 98.83 a kg.Hunsur-2 68,494 bales (7.01 million kgs), Rs 96.90 a kg. Periyapatna-1 95,721 bales (9.70 million kg), Rs 96.75 a kg. Periyapatna-2 89,546 bales (9.23 million kg) Rs 99.77 a kg.Periyapatna-3 81,714 bales (8.47 million kg) Rs 96.75 kg. Ramanathpura-1 84,409 bales (8.52 million kg) Rs 93.52 a kg. Kampalapura-1 78,630 bales (7.90 million kg) Rs 97.83 a kg. Kampalapura-2 67,031 bales (6.74 million kg) Rs 96.70 a kg. Ramanathpura-2 81,329 bales (8.49 million kg) Rs 91.82 a kg. Hunsur-3 49,996 bales (5.03 million kg) Rs 96.25 a kg.

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