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Virginia tobacco auctions on the auction floors in Andhra Pradesh are on the verge of conclusion and so far 210 million kgs of the crop has been sold at an average price of Rs 119 a kg, against the average price of Rs 113.80 a kg last year, according to sources. The auction process has come to a close on all the floors except those in the northern light soils of West Godavari district and there too it is likely to close by the week-end.
The bright grades accounted for 47.6 per cent of the crop, fetching Rs 124.83 a kg on the average, the medium grades 35.90 per cent fetching Rs Rs 119.93 a kg on the average and the low grades accounting for the rest at an average of Rs 87.44 a kg. The bright grade outturn was a positive feature this season, sources said.
In the northern black soil floors, 3.91 million kgs of tobacco was sold at an average price of Rs 106.91 a kg, and in the southern black soils 76.69 million kgs of crop was sold at an average price of Rs 109.72 a kg and in the southern light soils 64.17 million kgs sold at an average price of Rs 110.45 a kg. In the northern light soils of West Godavari, 65.75 million kgs of tobacco was sold at an average price of Rs 110.45 a kg.
Tobacco Board Chairman K. Gopal said there was a substantial surplus of nearly 40 million kgs of tobacco in AP against the authorised crop size of 172 million kgs. "A margin of 10 per cent of surplus or so is acceptable but anything beyond that is a matter which has to be dealt with. We have imposed penalties on the surplus and collected nearly Rs 35 crores or so. Our objective is to inculcate discipline among farmers as the surplus would have a bearing on the prices, especially when the international market conditions are not conducive. Crop regulation is of the essence, and we will take all measures to curb surplus production," he said.
The auctions in Karnataka will begin from September 15 and the board has authorised a crop size of 104 million kgs in that State. "We do not expect any substantial surplus in Karnataka. The outlook is bright for the State," he said.
One positive feature in Andhra Pradesh this season was that there were no illegal sales of tobacco off the floors and the entire crop, surplus and all, was sold on the floors. "We have exercised much greater control over the process than ever and it has resulted in stoppage of off-the-floor sales of tobacco," he added.
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