FCV tobacco sees steady prices at auction

Despite a dip in estimated production of flue cured virginia (FCV) tobacco in Karnataka, prices are steady at all the auction platforms.

This season, heavy rains in the growing region have affected the quality of the crop. The percentage of low and medium grades entering auction platforms has increased significantly, thereby bringing down the prices of lower grades.

Of the 18.6 million kg sold at the auctions, low grades comprised of 30 per cent (as against 24 per cent in 2004), medium grades 44.24 per cent (48.71 per cent) and bright grades 25.80 per cent (27.35).

"Tobacco farmers anticipating a good price for bright grades are holding its stock and dumping low and medium grades at auctions," said a source in Tobacco Board.

Prices of low grades is down by Rs 2.50 per kg as comapred to last year, medium grades are down by Rs 1.65 per kg but prices of bright grades have increased by Rs 1.64 per kg.

Heavy rains have affected tobacco crops in the growing areas of Periyapatna and Ramnathpura in Mysore district. With this, the estimated production of flue cured Virginia is expected to be around 85 million kg as compared to last year's 91 million kg.

As of October 24, 1,92,305 bales (one bale is 96 kg) were sold on different auction platforms with average price being Rs 46 per kg.