High tobacco prices bring cheer to farmers
Photo for representational purpose only
The surge is a result of increasing competition among buyers at auction centres in Koyyalagudem and Jangareddygudem
Rajamahendravaram: Record-breaking prices for Virginia tobacco are being reported in the Eluru and East Godavari districts of Andhra Pradesh. The surge is a result of increasing competition among buyers at auction centres in Koyyalagudem and Jangareddygudem. For four consecutive days, prices have been rising steadily, with the price per kilogram climbing from Rs 418 to a peak of Rs 430 just five days ago. The auctions are currently underway at the Jangareddygudem and Koyyalagudem auction centres in the Eluru district. On September 14, the Koyyalagudem auction centre recorded a maximum price of Rs 430 per kilogram.
This year’s record of Rs 430 surpasses last year’s all-time high of Rs 411 for quality tobacco. Last Friday, the price was Rs 418. Specific prices at various centres were as follows: Jangareddygudem (Auction Centre-32): Rs 418 per kg; Jangareddygudem (Auction Centre-18): Rs 417 per kg; Koyyalagudem: Rs 418 per kg; Gopalapuram: Rs 416 per kg; and Devarapalli: Rs 416 per kg. Farmers are thrilled that prices have reached Rs 430 with 40 days of auction time remaining, especially compared to last year when the Rs 411 price was achieved only in the final week. However, some farmers, like Kumar and Nagaraju from the Gopalapuram and Jangareddygudem regions, said that due to the sluggish start of the auctions, they had to sell most of their quality tobacco at lower prices. The remaining stock, however, is now poised to fetch higher prices.
The central government’s move to allow farmers to sell their excess produce at a nominal penalty has been a boon for them. Farmers are now selling their additional yield at five auction centres under the NLS (National Level Scheme) programme.
President of the Koyyalagudem Farmers’ Association Kakarla Vivekananda said that while the maximum price of Rs 430 is a great development, he hopes the price will stabilise around Rs 418 until the end of the auction.
He believes that stable prices will help farmers overcome their debts. He also said that the prices for low-grade tobacco have not increased beyond Rs 200.
An official from the tobacco auction centres stated that due to increased tobacco production in countries like Brazil and Zimbabwe, the demand for Indian tobacco has decreased in the international market.
India produces over 80 million kilograms of tobacco, while other countries produce over 400 million kilograms. Although the Tobacco Board approved the cultivation of 167 million kilograms of tobacco in Andhra Pradesh, it’s reported that this year farmers have produced over 240 million kilograms.
