Tobacco farmers get highest price of Rs 51 per kg

Tobacco growers sold 765 bales of southern light soil (SLS) tobacco, notching up the highest price of Rs 51 per kg in all the six auction floors of the Tobacco Board in Prakasam district last Friday, the 22nd day of the marketing season. Eleven buyers, who took part in the auctions, rejected 136 bales out of the 901 bales offered by the farmers.

Auctions began at Kaligiri and D C Palli platforms on January 23 and at Podili-1, Podili-2, Kandukur-1 and Kandukur-2 platforms on January 28.

While the highest bid in all the six platforms stood at Rs 51 per kg, the lowest rate varied. It was Rs 35 per kg at Podili-1 auction floor, Rs 35.80 per kg at Podili-2 platform, Rs 29 per kg at Kandukur-1 platform, Rs 32 per kg at Kandukur-2 floor, Rs 25 per kg at Kaligiri and Rs 20 per kg at D C Palli platform.

Eighty-two bales were sold at Podili-1 platform, 114 bales at Podili-2 platform, 104 bales at Kandukur-1 floor, 73 bales at Kandukur-2 platform, 192 bales at Kaligiri and 200 bales at D C Palli. A price of above Rs 40 per kg is considered profitable.

From the beginning of the auction till February 12, the total number of tobacco bales sold stood at 7,647 (10,36,919 kg). A bale weighs between 125-150 kg.

The authorised crop in the SLS lands of Prakasam district was 33.65 million kg while the estimated crop is around 44.4 million kg, ie, an excess of 10.85 million kg.

The Tobacco Board gave licences to farmers to grow 107.04 million kg crop in Andhra Pradesh. But the actual crop is expected to be 141.34 million kg. Excess crop problem persists in Karnataka too. Every year, excess crop puts the board on tenterhooks.

The highest bid recorded on February 13 last year was also Rs 51 per kg. On the first day of the auction, seven bidders were present and on the 22nd day their number increased to 11 only.

These two factors give credence to the apprehension among a section of farmers that there has been no competition at the auction platforms. But they are on the defensive while justifying the excess crop, which affects the bidding process.

The Tobacco Board runs 20 auction platforms in Guntur, Krishna, Khammam, West Godavari districts.