Truckers’ strike has come at a most inopportune time for the tobacco sector as the Tobacco Board puts on hold its decision to increase the number of bales from next week to enable the farmers to take advantage of the uptrend in the market.
E-auctioning of tobacco, the principal commercial crop in the drought-prone Prakasam district, is progressing on a promising note on the Southern Light Soil (SLS) and Southern Black Soil (SBS) platforms with the cigarette manufacturers offering good support by lapping up the bright grade tobacco at a premium price of up to ₹165 per kg.
“We are planning to step up the number of bales offered for sale by the growers from 1,400 to 2,500. In view of the strike by lorry operators, we have deferred our plans.” SBS regional manager G. Umamaheswara Rao says in a conversation with The Hindu while overseeing the auctions in Kondepi.
“We can keep the sold stocks in the auction platforms for only a couple of days. The trading will be hit if the strike prolongs,” he fears. “There is a good demand even for good coloured grade tobacco, which attracts buyers at ₹165 per kg,” SLS regional manager G. Ratnasagar says, adding that even medium grade greens is fetching a better rate of ₹105 per kg this time.
Market positive
The market sentiment is very positive with the growers so far marketing 2.2 million kg in the SLS and SBS platforms to get a healthy average price of ₹156 per kg, they add.
Meanwhile, former Tobacco Board member Ch. Ranga Rao wants the Tobacco Board to bring to auction platforms all the registered manufacturers and exporters to usher in buoyancy in the market and lift the medium and low grade tobacco, which accounts for 30% and 40% respectively, by offering a better price.
Farmers have produced about 30 million kg less than the crop size fixed by the Tobacco Board, explains Virginia Tobacco Growers’ Welfare Association (VTGWA) president Ch. Seshaiah.
It is the responsibility of the domestic cigarette industry and exporters to bail out the farmers by offering a better price for the medium and low grade tobacco as well, adds Ongole II auction platform ryots’ wing president V.V. Prasad
According to the Indian Tobacco Association sources, the grade out-turn this year is poor in view of hostile weather condition.
