Amid hopes of getting a better average price for farmers’ produce, e-auctioning of tobacco, the principal commercial crop in the drought-prone Prakasam district began on Southern Black Soil (SBS) platforms on Monday.
Buyers procured 98 bales of tobacco offered by the peasants quoting a high of Rs. 126 and a low of Rs. 118 in Ongole-I auction platform after inauguration of e-auctions by SBS Regional Manager G.Bhaskar Reddy.
The farmers realised an average price of Rs. 123.65 per kg on the 13,350 kg of tobacco marketed on the SBS platforms on the inaugural day with participation of five active buyers, informed Mr Bhaskar Reddy.
There was no bid for one bale of tobacco due to price disagreement between the buyers and sellers.
Reacting to the first day’s trading, Virginia Tobacco Growers Association president Ch. Seshaiah said: “It is unfortunate that though there are over 200 registered tobacco traders, only 20 of them have been provided with bank guarantee . Still worse, only five players have actively entered the market''.
Farmers wanted the Tobacco Board to intervene in the market to ensure an average price of Rs. 125 per kg for their mixed crop this year, with less bright grade and more medium grade stuff in the wake of adverse climatic condition, explained former Tobacco Board member Ch. Ranga Rao. “We got a high price of Rs. 135 per kg of tobacco last year and this year it should touch at least Rs. 140 per kg, given the increase in the cost of farm inputs,” Sangala Venkateswara Reddy, a progressive farmer, said.
The Union Government should allow Foreign Direct Investment (FDI) in tobacco sector and also allow international merchants to take part in auctions to turn India from an ‘opportunity market’ into a ‘definite market’, they added.
We got a high price of Rs. 135 per kg of tobacco last year, and this year it should touch at least Rs. 140 per kg, given the increase in the cost of farm inputs
Sangala Venkateswara Reddy,tobacco grower
