Tobacco auctions in Andhra Pradesh are proceeding at a snail's pace this season, with only 20 million kg sold on the floors till date at an average price of Rs 116.21 a kg, worrying farmers of the State. This is despite farmers sticking to the authorised crop size this season. Against the authorised crop size of 174 million kg, the actual production in the State may be lower than 170 million kg. Heavy rains damaged the crop in many districts and hit production. However, fortunately, the quality of leaf was not affected, and the production of bright grades is more than usual.

Karnataka auctions

The auctions in Karnataka are still going on, and this is said to be one of the major factors responsible for the poor trade participation on the Andhra Pradesh floors till now. In Karnataka, till date 120 million kg has been sold at an average price of Rs 93.70 a kg. Here, against the authorised crop size of 100 million kg the farmers have grown 130 million kg. The unauthorised, or surplus, crop of 30 million kg is being auctioned in that State now. The farmers in Andhra Pradesh are aggrieved that even though they have not grown surplus this season, they are being penalised as auctions are being delayed in the State as the trade is busy buying the unauthorised crop in Karnataka.

Mr G. Kamala Vardhana Rao, the Chairman of the Tobacco Board, said here on Monday that the auctions in Karnataka would come to a close in a week or so and the trade participation in AP would improve certainly. “It is a fact that auctions in AP have been slow till now, but the trade will shift to AP soon, as the Karnataka auctions will come to a close and things will improve,” he said and added that the Board was making all efforts to secure a remunerative price for the farmers on the floors. The farmers in Prakasam district agitated for a better price and there was disruption of auctions for ten days or so. “The Board intervened and persuaded the trade to hike the price by Rs 4 per kg. We are urging the trade to stand by the farmer this season, as AP farmers have lost heavily due to torrential rains,” he said.

He felt that the demand to suspend the auction of unauthorised crop in Karnataka and take up auction of authorised crop in Andhra Pradesh was not a tenable one. “We are always encouraging and persuading farmers in Karnataka or Andhra Pradesh to stick to the prescribed crop size to get a better price on the floor. If they exceed the crop size, we are levying punitive cess. We are levying such cess in Karnataka this season,” he explained.

He said the Board would take all steps to help tobacco farmers in both the States, but the trade should also respond positively to the situation.

“There is an increase in global tobacco production this season, and therefore the prospects for Indian tobacco may not be as rosy as they were during the past two seasons. There has been a substantial hike in production in Brazil and Zimbabwe. But the trade should support the farmer in times of distress,” he opined.

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