Tobacco farmers in Andhra Pradesh are seeking higher prices though their realisation now is still better than last year. Indications are that the prices may have peaked.
After 36 days of auctions at 20 auction floors of the Tobacco Board in the state, farmers have so far sold 41.28 million kg at an average price of Rs 96.96 per kg.
This is against Rs 70.34 per kg they received for the same volume last year. Farmers in the state this year have produced 188.54 million kg of Flue-cured Virginia (FCV) tobacco, which is in excess of the target of 169.88 million kg set by the Tobacco Board. Last year, they produced 165.33 million kg, which was also in excess.
Tobacco Board Chairman J Suresh Babu said that farmers were unlikely to get better prices now. It was their mistake to go for excess crop unmindful of consequences. However, the present rate is better than last year’s.
A significant feature of this year has been that all the grades of tobacco have received higher prices than last year. Again, bright grade tobacco forms 66.36 per cent of their crop. Farmers have sold 27.40 million kg of this grade and earned an average Rs 99.92 per kg against Rs 73.94 per kg last year.
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