The maximum price of Rs 145.60 a kg was realised for Virginia tobacco this season in Andhra Pradesh on the auction floors in West Godavari district on Wednesday, according to Mr G. Kamala Vardhana Rao, Chairman of the Tobacco Board.

He said that so far 112.52 million kg of tobacco had been sold on the floors in the State at an average price of Rs 98.51 a kg. He said the Board had authorised 162 mkg of crop in the State and there was no surplus. Roughly 50 mkg more needed to be sold. “The auctions are going on at a faster pace this season. During the corresponding period last year, only 78 mkg could be sold at an average price of Rs 107.67. In West Godavari, in the northern light soils (NLS), the maximum prices are realised. Exports have picked up of late and the performance has been encouraging in the first quarter. It has had a positive impact on the auction prices,” he said.

He said that the Tobacco Board had taken up a campaign to educate the farmers of Andhra Pradesh and Karnataka on the need to exercise discipline and stick to the crop size prescribed, as it would have a positive impact on the auction prices. “It is yielding results in both the States,” he said.

He said after the completion of the auctions in AP, the auctions in Karnataka would be taken up sometime in September.

Referring to the standing crop in Karnataka, he said the rains were not very encouraging and it would have to be seen whether it would have any negative impact. The Tobacco Board had authorised 98 mkg of crop in the State.

Mr Kamala Vardhana Rao said the board had exerted pressure on the trade to increase the prices on the five auction floors in West Godavari district and the results could be seen on the floors. The lowest average prices so far were realised on the Keesara floor in Krishna district (Rs 68.52/kg) and Torredu in East Godavari (Rs 83.65).

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