HYDERABAD: Tobacco farmers in Andhra Pradesh are keeping their fingers crossed over this year's auction. Having suffered a loss of over Rs 120 crore due to heavy rains, they are now hoping that the auction will fetch them good money to tide over the crisis. Going by the Karnataka auction, it is possible that these farmers can expect Rs 110-120 a kg due to strong international demand. "This year, crop size has come down due to heavy rains in November and December. Most farmers suffered losses and the yield has come down to about 3-4 quintal per hectare as against the average production of 7-8 quintal per hectare. However, the quality is good this time and we expect to get about Rs 120 per kg this year," said G Jagannatha Rao, a Tobacco Board member and a farmer from Guntur.
Tobacco auctions will start on February 24 in Andhra Pradesh, the largest producer of flue-cured Virginia (FCV) tobacco and accounts for 70% of the exports. In Karnataka, the second largest FCV producer, auctions have begun. "In Karnataka, the average price of tobacco is about Rs 101 per kg and for the high grade variety, traders are willing to pay up to Rs 128 per kg. We expect the high price trend to continue here in Andhra Pradesh as well. Unlike last year, the quality of production is good this time," said G Siva Ram Prasad , another Tobacco Board member.
During the last season, there was a marked slump in prices across all auction platforms in Andhra Pradesh. The average price in the state has come down to Rs 80-85 a kg, down over Rs 20 on the aggregate as against the previous season. Last year, 205 million kg of tobacco was sold in Andhra Pradesh. "Last year, prices came down in the state due to the poor quality of the crop. This year, the prices will hinge upon international demand and the quality of the commodity," said Kamalavardhana Rao , chairman, Tobacco Board.
