Tobacco farmers in Andhra Pradesh’s conventional tobacco-growing districts are optimistic, as retailers swooped up vibrant and medium grade varieties offering premium charges throughout ongoing auctions within the Southern Light Soil (SLS) and Southern Black Soil (SBS) areas.
During the 31-day public sale within the platforms of Ongole I, Kondepi, Vellampalli, Podili, D.C. Palli, Kandukur I and Kandukur II, and 19-day public sale within the second part platforms of Ongole II, Tangutur, Kaligiri, and Kangiri within the districts of Nellore and Prakasam, vibrant grade kinds of F1 and F2 fetched a premium worth of as much as ₹185 per kg.
“Tobacco in all grades is on the way to the market. The traders pick up even ripe ones, as well as greens.” After witnessing the performance of auctions in Kandukur, SLS regional manager D. Venugopal remarks, “There are not any takers for the unbulky and NOG sorts.” He says that the rejection charge is presently lower than 10%.
The sensible grade varieties obtained a worth of 165 to 185 per kg, whereas the medium grade sorts garnered a worth of 150 to 160 per kg.
According to Tobacco Board sources, even low-grade varieties have gotten a better worth of 120 to 140 per kg because of the return to normalcy.
In the earlier two years, the Coronavirus has resulted in decrease tobacco demand.
Despite the truth that the tobacco auctions started late in March, the farmers had been capable of promote 19.73 million kg of tobacco at a median worth of 179.60 per kg. During the identical interval the earlier 12 months, they had been solely capable of promote 13 million kg at a median worth of 149 per kg, after COVID-19 precipitated sleepless nights for all stakeholders, together with farmers and sellers, and buying and selling needed to be interrupted because of lockdown-like curbs.
Some exporters keep away
“Some exporters have stayed away from the market because they are apprehensive about global demand in the aftermath of the Russia-Ukraine conflict,” a gaggle of farmers on the Ongole II public sale platform complained.
They wished the crop regulator to ensure that these exporters who had submitted authorization on the time of crop measurement fixation had been capable of take part absolutely out there.
This 12 months, farmers are coping with a higher variety of middling and low-grade sorts. V.V. Prasad, a farmer chief, revealed to the merchants that the grade out-turn had been removed from sufficient within the aftermath of heavy rains in November and unseasonal rains as soon as once more in January.
This 12 months, the sensible grade accounted for 40% of the general manufacturing within the two areas, in comparison with 60% the 12 months earlier than. The center and low-grade cultivars every accounted for 30% of the general 68 million kilogram yield.
The agricultural regulator boosted the crop measurement to 80 million kg in anticipation of accelerating demand. In each areas, it declined by 12 million kg, opposite to forecasts.
Plea to Markfed
Meanwhile, farmers led by Tobacco Board member Mareddy Subramanyeswara Rao pleaded with the Markfed, which had made a first-of-its-kind intervention out there two years in the past on the behest of Chief Minister Y.S. Jagan Mohan Reddy to keep away from misery sale, to not offload the shares held by it at this juncture, fearing a drop in market costs for low-grade varieties.
First revealed on: 25 Apr 2022, 02:37 IST