Tobacco growers in Karnataka have realised 60 per cent higher prices at Rs 92-95 a kg for the flue cured virginia (FCV) variety at the auctions that began early this week for the current crop season (2008-09) compared to the last year.
The main reason attributed for higher price realisation this season are the large foreign orders being placed through Indian buyers. The foreign orders have come following the decline in tobacco production in key growing areas like Zimbabwe and Kenya in Africa and Spain in Europe.
| PUFFING MORE As on Sept 15 in different auction platforms | ||
| Platform | Total qty mrktd (in kg) | Avg price (in Rs) |
| HD Kote | 49,221 | 93.66 |
| Hunsur-I | 61,290 | 96.14 |
| Hunsur-II | 33,020 | 93.11 |
| Periyapatna I | 84,709 | 93.85 |
| Periyapatna II | 46,208 | 94.43 |
| Periyapatna III | 32,392 | 93.20 |
| Kampalapura I | 71,839 | 97.48 |
| Kampalapura II | 37,161 | 91.95 |
| Ramanathpura I | 77,137 | 89.58 |
| Ramanathpura II | 54,498 | 90.21 |
According to Tobacco Board officials, superior grade tobacco has breached the Rs 100 a kg mark early this week and on Tuesday, the price soared to an all time high of Rs 118 a kg.
Trade sources say the Karnataka tobacco price could go up substantially once foreign importers descend on the auction platforms across the state after conducting crop survey some time middle of the season (mid-October to November second week) and place orders.
Karnataka has 85,000 hectares under tobacco cultivation in the districts of Mysore, Hassan and Shimoga with 41,000 registered growers and 56,630 barns. The Tobacco Board, since the beginning of Karnataka tobacco crop season, has marketed 547,475 kg with an average price of Rs 93.44 a kg. State’s authorised crop size is 96.52 million kg for 2008-09 crop season.