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Tobacco auctions in Andhra Pradesh are going on at a sluggish pace this season and so far only 18 million kg of the crop (the authorised size being 172 million kg) has been sold on the 19 auction floors at an average price of Rs 114 a kg.
Auctions in Karnataka concluded by the end of April and it was expected that the trading would pick-up on AP floors after that but that did not happen. It is said that export orders have not been been confirmed yet and the trade participation is therefore not to the desired extent.
In Karnataka, 103.50 million kg of tobacco was sold at an average price of Rs 107.49 a kg and there was no surplus. In AP, it is estimated, that there may be a surplus of 15 million kg or so in addition to the authorised 172 million kg.
As the auctions have not yet picked up, farmers are not bringing the bright grades to the floors. They are hoping that the situation would improve soon.
In the prevailing market conditions, it becomes very difficult for the farmers in the black cotton soils to sell their crop.
Trade circles are unable to state when the situation would improve.
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