Karnataka's tobacco crop size fixed at 100 mn kg

The Tobacco Board has fixed Karnataka's Flue Cured Virginia (FCV or traditional tobacco) crop size at 100 million kg for 2008-09, an increase of 5.26 per cent over pervious year's (2007-08) crop size of 95 million kg.

"Strong global demand for FCV tobacco varieties and sharp fall in cultivation in traditional areas in Europe are the key reasons for hiking the state's crop size," said a Tobacco Board official.

The board had to fix the crop size at 100 million kgs even though representatives from the Indian Tobacco Association, comprising tobacco merchants and buyers, wanted a size of around 120 million kg since the price is high.

The board, while fixing Karnataka's crop size, factored in sale of over 87 million kg through auctions in the state, which closed about two months ahead of the scheduled closure during the auction season last year.

VCF tobacco is grown mainly in the southern and Malnad taluks of Mysore, Hassan and Shimoga districts. The Board estimates show there are over 40,000 registered growers.

According to the board official, "On account of low to medium rainfall in the state, production was low. It saw a good demand for Karnataka FCV tobacco in view of the political instability in a few African countries, where production has fallen drastically."

Also, the demand from foreign buyers was visible last year (2007-08) with 35-37 companies descending on the 10 auction platforms compared with 30 last year (2006-07).

During the 2007-08 crop season, 87.61 million kg was marketed, of which Bright Grades comprised 28.72 million kg (last year 33.24 million kgs) at an average price of Rs 67.33 a kg; medium grades 35.77 million kg (40.06 million kgs) at Rs 61.72 and low grades account for 23.11 million kg (23.67 million kgs) at Rs 45.33.