NLS farmers emerge as biggest gainers

Tobacco auctions close in 12 platforms

Farmers of the northern light soils (NLS) emerged as the biggest gainers, notching up an average price of Rs 41.75 per kg tobacco as against the cost of production of Rs 32 per kg as 2005 auctions closed in 12 platforms of the Tobacco Board. The auctions at the remaining eight are expected to end in a couple of weeks.

The NLS farmers were followed by northern black soil (NBS) farmers, who earned Rs 33.08 per kg as against the cost of production of Rs 25 and farmers of southern black soil (SBS) with an earning of Rs 33.49 against an expenditure of Rs 28 per kg.

The farmers of central black soils (CBS) earned Rs 32 per kg as against cost of production of Rs 28. On an average, farmers are said to have harvested 1,000 kg per acre.

Farmers of southern light soils (SLS) seem to be the losers as they got Rs 35.42 per kg while their expenditure stood at Rs 33-34, leaving them a margin of a paltry Rs 250-300 per acre.

These averages are likely to remain same till the end of auctions. However, farmers' demand that they be paid Rs 41 or 42 per kg has not been met so far. While winners NLS farmers belong to West Godavari, losers SLS farmers belong to Prakasam. The former raised the crop in 18,427 hectare, while the latter grew in 57,000 hectare.

According to statistics provided by the Tobacco Board here, crop weighing 4.32 million kg was sold at Bhadrachalam and Thorredu against an authorised 4.39 million kg.

Traders lifted 3.22 million kg tobacco at Keesara (2.89 million kg authorised) and 1.20 million kg at Guntur (2.65 million kg authorised. About 2.80 million kg tobacco was auctioned at Medarametla (2.20 million kg authorised) and 12.30 million kg tobacco at Ongole-2 (authorised 6.72 million kg).

About 6.50 million kg crop was disposed of at Kaligiri (5.20 million kg authorised), and 7.50 million kg at DC Palli (5.40 million kg authorised).

The crop auctioned at Devarapalli was 10.49 million kg (8.46 million kg authorised), 9.80 million kg at Jangareddygudem-1 (6.97 million kg authorised), 9.96 million kg at Jangareddyguden-2 (authorised 5.70 million kg), and 9.96 million kg at Koyyalagudem (7.27 million kg authorised).

The auctions also show that both the board and the Indian Tobacco Association (ITA) have gone wrong in their perception on tobacco harvest in Andhra Pradesh for 2004-05.

While the ITA experts put the crop around 160 million kg, the board calculated the same at 146 million as against the authorised crop of 108.16 million kg. Now the tobacco sales have already crossed 147 million kg, and it is evident that about 5-6 million kg more tobacco is expected to arrive at the eight floors, making the total production of tobacco in Andhra Pradesh around 153 million kg.

Auctions came to an end at Bhadrachalam and Thorredu (NBS) in Khammam district; at Keersara and Guntur (CBS) in Krishna and Guntur districts respectively; at Medarametla and Ongole-2 (SBS) in Prakasam district; at Kaligiri and DC Palli (SLS) in Prakasam district, and at Devarapalli, Jangareddygudem-1, JR Gudem-2 and Koyyalagudem (NLS) in West Godavari district.