There has been a significant improvement in tobacco auctions in Andhra Pradesh during the month, after the Union Minister of Commerce Nirmala Seetharaman held a meeting in Vijayawada, and it is visible both in the quantity sold on the floors and in the prices realised for different grades, according to K Gopal, Chairman of the Tobacco Board. He was addressing the media here on Monday. He said till Saturday 76.48 million kg (mkg) of tobacco had been sold on the floors in the State at an average price of ₹106.28 a kg against 138.36 mkg at an average price of ₹119.57 last year by the corresponding period.
“There has been great improvement in the past few weeks and we have injected some vigour into the auction process. However, in comparison with last year, it may not be enough. But considering the market situation this year it is satisfactory,” he said.
He said the trade was making efforts to honour the indicative prices agreed upon in the presence of the minister and there had been substantial improvement in the prices for all grades. There has to be some improvement for the medium grades. The highest price of ₹149 was realised on the floors of the West Godavari in the northern light soils.
Gopal said that depending on the current market situation the trade had given an indent for a much lesser quantity of tobacco for 2015-16 season in AP and accordingly 120 mkg had been fixed as the crop size in AP. “It should be strictly adhered to and there should not be any surplus. Otherwise, a problem will crop again for all concerned,” he said.
He said there was improvement in tobacco exports as well and the figure may touch or cross ₹7,000 crore during the current financial year. He said he would be leading a delegation to China from July 28 to August 1 to promote Indian tobacco in that country.