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Virginia tobacco auctions began a week ago on all platforms in Andhra Pradesh, but one (Torredu) in East Godavari, and less than a half-a-million kg of crop has been sold so far at an average price of Rs 154 a kg.
According to the Tobacco Board officials here, the auctioning of the crop has not yet gained any momentum in the week and no clear trend has emerged yet. “It is a bit premature to predict how the market will be this season. However, due to drought conditions and late plantation of the crop in many areas, the output has fallen substantially this season. Against the authorised crop size of 130 million kg, the actual output may only be 104-105 kg," said an official in the Tobacco Board here.
Usually, every season, there is a substantial surplus in the State, having an adverse impact on the prices. There is no such problem this year. However, in the international market, the crop in Brazil as well as Zimbabwe this year is said to be on the higher side, and the fall in output in AP may not have any significant impact on prices.
In Karnataka, the auctions came to a close last week. According to Tobacco Board officials, 98.72 million kg of tobacco was sold in that State at an average price of Rs 134.5 per kg.
sarma.rs@thehindu.co.in
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