The second section of tobacco auctions started on an optimistic observe in Prakasam and SPSR Nellore districts with bright-grade leaves fetching the growers the best value of ₹201 per kg at Kondepi.
Commencing the auctions at seven platforms (two in Southern Black Soil (SBS) area and 5 in Southern Light Soil (SLS) area), Tobacco Board manufacturing supervisor M. Krishna Sri stated 2,819 bales have been bought on Thursday at a mean value of ₹198.75 a kg.
Exporters competed with home cigarette producers to lap up the F2-grade number of tobacco introduced by farmers and provided costs within the vary of ₹190-₹201 a kg. ‘‘With bright and medium grades accounting for 70 to 80% of the total crop, farmers can realise a better average price this year,’‘ stated Ms. Krishna Sri. The auctions started on the platforms of Ongole II; Kangiri and Tangutur I within the SBS area; and Kandukur I, Kandukur II, Kanigiri, D.C. Palli and Kaligiri within the SLS area.
The yield of the principal industrial crop is estimated to be over 102 million kg within the two areas. That is over 12 million kg greater than the 89.34 million kg mounted by the crop regulator.
Farmers went for tobacco cultivation even in farms the place that they had grown chickpea after cyclone Mandous destroyed crops sown within the early Rabi season. As a end result, the extent of tobacco cultivation went as much as 85,000 hectares in the course of the Rabi season as in opposition to 66,000 hectares in the course of the corresponding interval final yr.
Traders ought to take note of the rise in price of cultivation by about 30% this yr because the farmers needed to go for replantation on not less than 26,000 hectares this yr following unseasonal rains. Labour price additionally elevated this yr by over 20%, based on a bunch of farmers in Ongole II public sale platform.
‘‘We are hoping in opposition to hope for the market to stay regular because the auctions progress. We count on higher costs for medium and low grade varieties as effectively,” stated farmer V.V.Prasad.
Source: www.thehindu.com