Tobacco market in Karnataka abuzz with action

Karnataka tobacco auction platforms are witnessing brisk business as the season is coming to a close. Huge unexpected volume at the fag end of the auction season is mainly attributed to sudden rush of foreign tobacco buyers.

According to a tobacco board official, foreign buyers descended on the platforms late, but made good for what they had missed in the initial phases by buying out in large quantity.

Foreign buyers mainly from China, Thailand and a few European countries purchased around 30 to 40 million kg in auctions at various platforms.

"This year, all tobacco auction platforms in the state will remain open for an additional month due to loss of auction days in November last year, when farmers were agitating over low prices, leading to closure of platforms," he added.

Price realisation for tobacco growers has been good this year (2006-07), and they have got average price of Rs 56.82 as compared with Rs 48.09 a kg in 2005-06.

As of February 6, prices at different auction platforms is as follows: HD Kote 7.66 million kg (average price Rs 57.35 per kg), Hunsur 8.65 million kg (Rs 56.66 per kg), Hunsur I 8.20 million kg (Rs 55.47 per kg), Periyapatna I 8.75 million kg (Rs 58.73 per kg), Periyapatna II 7.16 million kg (Rs 56.71 per kg), Periyapatna III 8.01 million kg (Rs 57.24 per kg), Kampalapura 14.35 million kg (Rs 56.50 per kg) and Ramnathpura 12.55 million kg (Rs 56.32 per kg).