Tobacco prices in Karnataka up on low output

Despite the appreciating rupee, Karnataka tobacco farmers are reaping rich dividends at ten auction platforms in the state as the harvest has come down this year. After 42 days of auctioning, farmers have sold 30.63 million kg of the 92.33 million kg harvested this year.

Last year, the output was 96.98 million kg. As the crop size has been below expectations, traders are ready to pay Rs 66.39 a kg for bright grade tobacco, Rs 57.95 a kg for medium grade and Rs 40.63 for low grade tobacco.

A Tobacco Board official said this year's crop comprised 37 per cent bright grade, 45 per cent medium grade and the remaining low grade. As the bright grade tobacco harvest has increased, farmers made 15 paise more on a kg than what they made last year.

The overall average price they earned (Rs 56.24 a kg) on all grades has so far been 30 paise more a kg than last year's average price.

Farmers at the Periyapatna-2 auction centre have fetched Rs 57.89 a kg, and those at the Periyapatna-3 and Periyapatna-1 centres have fetched Rs 56.94 and Rs 56.83 a kg respectively.

At the H D Kote platform, 2.4 million kg of tobacco was auctioned at Rs 57.10 a kg. Growers under Hunsur-1 platform, who produced 10.51 million kg, sold 3.3 million kg at Rs 56.74. Farmers of Kampalapura-1 auction floor pooled 9.09 million kg, and have so far sold 3.1 million kg at Rs 56.86.

At the Kampalapura-2 platform, 2.6 million kg was auctioned at Rs 55.38, while at the Ramanathpura-1 and 2 platforms, 3.6 million kg and 2.5 million kg were sold at Rs 55.24 and Rs 54.88 a kg respectively. At Hunsur-2, traders paid Rs 54.40 a kg and lifted 3.17 million kg.