Tobacco prices decline in Karnataka

Karnataka tobacco farmers, though contented at getting an average of Rs 60 per kg on Tuesday after 57 days of auctions at nine Tobacco Board platforms, feel a little disappointed over sliding of price from Rs 64.47 per kg they earned at beginning of the season.

Traders purchased 3,14,21,451 kg of flue-cured Virginia tobacco (FCV), less than half the harvest, during the last 57 days. Auctions have not yet commenced at Shimoga auction floor.

The average price so far realised by farmers is still more than the average Rs 45.76 per kg that they received for the same crop quantity sold last year and more than the average Rs 48.76 they received for the whole of 2005 auctions.

The board's midway estimation puts the Karnataka crop size at 82.55 million kg as against the authorissed 83.27 million kg. As the harvest is less than the authorised crop, farmers are assured of the present prices and they may get a few more rupees per kg as the season comes to a close in January. Over 200 buyers have been competing to grab the crop, which has been number one choice for international firms.

The auction figures provided by J Suresh Babu, executive director, Tobacco Board, show that farmers of Periyapatna-1 platform have reaped the highest average price of Rs 62.96 per kg, where the harvested was 9.18 million kg tobacco (authorised 10.84 million kg).

Farmers of HD Kote platform, who produced 8.09 million kg crop (authorised 6.72 million kg), notched up the second highest average price of Rs 61.15. The next highest average prices of Rs 60.56 and Rs 60.53 have been bagged respectively by farmers of Periyapatna-2 and Periyapatna-3 auction floors. The total produce of the two platforms 8.55 million kg (9.07 million kg authorised) and 8.36 million kg (8.71 millionkg authorised) tobacco respectively. Farmers of Ramanathpura auction floor, who produced 13.64 million kg FCV crop (authorised 13.98 million kg), earned an average Rs 59.74 per kg. Average prices of Rs 58.90 and Rs 58.48 have been paid to farmers of Hunsur-2 ands Hunsur-1 platforms respectively.

Their total harvest was 9.04 million kg (authorised 8.6 million kg) and 9.40 million kg (9.37 m kg authorised) respectively. Farmers of the two floors at Kamalapura received an average price of Rs 58.60 per kg. The crop they produced is estimated at 15.47 million kg (authorised 14.68 million kg).

Buyers on Tuesday paid a maximum of Rs 68 per kg at all nine auction floors while a minimum of Rs 40 per kg at five floors and Rs 38 per kg at four platforms.