Tobacco auctions in Andhra Pradesh have gathered momentum during the past two to three weeks and so far 103 million kg have been sold on the floors at an average price of Rs 98.99 a kg.
According to Mr V. Kannaiah, Manager (Auctions), the performance was comparatively much better than last year, as it took 124 days then to market a similar quantity. The average price was, however, slightly higher last year at Rs 101.50 a kg.
He said exports orders had been received by the trade and therefore the auctions had picked up momentum of late.
“We are confident of completing the auction process in Andhra Pradesh by August 15. Last year the last auction day was October 13,’’ he said.
Crop size
He said the Tobacco Board had authorised a crop size of 162 mkg in Andhra Pradesh, but the actual crop size may be 164 mkg. The surplus in the state was negligible.
He said in Karnataka, where plantation was currently going on, the board had authorised a crop size of 98 mkg. But the progress of plantation was not fast, as the monsoon was not encouraging.
Auctions in the state would begin in the second week of September.
It may be noted that the cropping seasons differ in Andhra Pradesh and Karnataka, with virginia tobacco being an early monsoon (or kharif) crop in Karnataka, whereas it is a late kharif (or early rabi) crop in Andhra Pradesh.
Therefore, auctions are held by the Tobacco Board alternatively in the two states and sometimes they are also held concurrently for a short of period of time, if there is a delay in either state.