The market crisis triggered by the stipulation of larger pictorial health warning on cigarette packs has blown over.
Much to the relief of tobacco growers, buoyancy returned to the market with the manufacturers turning active on Thursday, lapping up over five lakh kg of tobacco offered by farmers in the auction platforms in Southern Light Soil (SLS) and Southern Black Soil (SBS) regions.
The farmers stalled the proceedings in the beginning of the week upset with the fall in prices as the manufacturers partially withdrew from the market in the wake of the larger pictorial warning enforced by the Centre from April 1. The market leader, ITC, took its normal market share as also other cigarette manufacturers, while exporters chose to wait and watch, SLS Regional Manager Ratnasagar said.
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A quantity of 2,07,898.10 kg of tobacco was traded at an average price of 128.84 per kg in the auction platforms in the SBS region, SBS Regional Manager G. Bhaskar Reddy said. Farmers were happy as they could sell 2.25 lakh kg in the SLS region to get an average price 127.96 per kg, Mr. Ratnasagar said.
The volume is expected to go up to six lakh kg per day from Monday in both the regions, according to Tobacco Board sources.