The average flue-cured tobacco price during the early part of the leaf auction season in the Indian state of Andhra Pradesh was up by almost 48 percent on that of the 2016 selling season, according to a story in the BBM Bommidala Group newsletter.
Following 20 days of marketing, about 5.17 million kg of flue-cured had been sold, 4.07 million kg of it comprising bright leaf grades.
The average price was said to have been Rs158 kg, with the highest bid going to Rs168 peer kg.
The rise in prices during the current season, which started on March 15, was attributed to the supply and demand situation.
Andhra Pradesh’s tobacco acreage is said to have declined this year as many growers, who suffered heavy losses last season, switched to chilli cultivation. Drought and late planting of the crop in many areas also contributed to the shortfall.
This season’s crop is estimated to be about 104-105 million kg, short of the 130 million kg authorized volume.