Business Standard

AP tobacco farmers get good returns

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Chandrasekhar Guntur

Farmers in Andhra Pradesh received an average price of Rs 99.72 per kg for Virginia flue-cured tobacco during the auction here. Last year, during the same period, they were paid an average of Rs 59.16 per kg.

Tobacco Board Chairman J Suresh Babu said world market was favourable to Indian tobacco this year too. There has been no increase in the crop size of most tobacco-producing countries. China, though increased its crop size, is not in a position to export as its crop would go into meeting the demand of its smokers whose number is increasing 3 per cent year-on-year.

 

The harvest comprises of a record 89.51 per cent bright grade tobacco, 10.43 per cent medium grade and 0.06 per cent low grade tobacco. Farmers received Rs 99.77 per kg for bright grade, Rs 99.36 per kg for medium grade and Rs 80.56 for low grade tobacco.

Farmers of northern black soil produced 8.17 mn kg tobacco, while central black soil produced 5.80 mn kg and southern light and black 117.29 mn kg.

Those of northern light soil produced 51.04 million kg. The harvest may touch 190 million kg, which is in excess of authorised crop 160 million kg.

Farmers of NLS are receiving Rs 110 per kg, the maximum price. On all the auction floors, buyers offered Rs 100 per kg right from day one as against Rs 60-75 during the initial days last year.

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First Published: Mar 13 2009 | 12:42 AM IST

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