Tobacco price realisation down 5.5%

Karnataka's tobacco farmers are getting 5.41 per cent lower price realisation this year mainly because of the appreciating rupee. Another reason cited for the fall in prices was importers staying away from auction platforms in the state.

The average price of tobacco was ruling at Rs 56.21 a kg against the last year's price of Rs 59.43. Trade sources said the price realisation could go up substantially once the rupee stabilised and importers entered the local markets.

"Normally, importers descend on the auction platforms after conducting crop survey some time in the middle of the season (mid-October to November second week) and then place orders," they added.

According to Tobacco Board officials, so far auctions on all the platforms are going on well, but the primary concern for exporters is the sharp rupee appreciation.

Tobacco Board, since the beginning of Karnataka tobacco crop season, has marketed 10.25 million kgs with an average of Rs 56.21 a kg. The state's authorised crop size is 94.07 million kgs for 2007-08.

Of the total tobacco sold, Bright Grades made up for 3.21 million kgs (against last year's 5.01 million kgs) at an average price of Rs 66.18 a kg and Medium Grades accounted for 4.42 million kgs (5.38 million kgs) at an average price of Rs 66.18 a kg. Low Grades accounted for 2.61 million kgs (2.91 million kgs) at an average price of Rs 41.55 a kg.

Following are grade wise prices at auction platforms, authorised quantity and quantity sold as on October 3 in different auction platforms.

HD Kote: Bright grades 2.72 lakh kgs (average price Rs 65.62 per kg), Medium grades 3.56 lakh kgs (Rs 55.39 per kg), Low grades 1.14 lakh kgs (Rs 40.90 per kg).

Hunsur I: Bright grades 3.81 lakh kgs (Rs 66.40 per kg), Medium grades 4.54 lakh kgs (Rs 58.93 per kg), Low grades 3.03 lakh kgs (Rs 42.76 per kg).

Hunsur II: Bright grades 2.66 lakh kgs (Rs 65.05 per kg), Medium grades 4.84 lakh kgs (Rs 55.14 per kg), Low grades 2.89 lakh kgs (Rs 39.71 per kg).

Periyapatna I: Bright grades 4.45 lakh kgs (Rs 66.35 per kg), Medium grades 5.59 lakh kgs (Rs 58.72 per kg), Low grades 3.70 lakh kgs (Rs 42.87 per kg).

Periyapatna II: Bright grades 4.03 lakh kgs (Rs 66.85 per kg), Medium grades 3.97 lakh kgs (Rs 59.13 per kg), Low grades 2.16 lakh kgs (Rs 41.40 per kg).

Periyapatna III: Bright grades 2.63 lakh kgs (Rs 66.83 per kg), Medium grades 4.44 lakh kgs (Rs 59.13 per kg), Low grades 2.20 lakh kgs (Rs 42.94 per kg).

Kampalapura I: Bright grades 3.46 lakh kgs (Rs 66.28 per kg), Medium grades 4.32 lakh kgs (Rs 57.86 per kg), Low grades 2.43 lakh kgs (Rs 41.91 per kg).

Kampalapura II: Bright grades 2.46 lakh kgs (Rs 65.90 per kg), Medium grades 3.39 lakh kgs (Rs 55.69 per kg), Low grades 1.91 lakh kgs (Rs 40.39 per kg).

Ramanathpura I: Bright grades 3.37 lakh kgs (Rs 66.37 per kg), Medium grades 5.90 lakh kgs (Rs 58.04 per kg), Low grades 4.06 lakh kgs (Rs 41.69 per kg).

Ramanathpura II: Bright grades 2.49 lakh kgs (Rs 65.45 per kg), Medium grades 3.62 lakh kgs (Rs 56.19 per kg), Low grades 2.62 lakh kgs (Rs 40.61 per kg).