• March 28, 2024

Andhra sales picking up but volume, prices still down

After a slow start, flue-cured auctions in the Indian state of Andhra Pradesh are proceeding ‘at a satisfactory pace’, according to a story by Ch. R.S.Sarma for Business Line, citing the Tobacco Board of India chairman, K. Gopal.

In a story relayed by the TMA, Gopal was quoted as having told media representatives that the Union Commerce and Industry Minister Nirmala Sitharaman had directed tobacco buyers to purchase leaf in accordance with the agreements they had reached with the board.

Although sales have picked up, volumes are still behind those of last year and grower prices are down, too.

Growers were said to have sold 76.48 million kg of leaf at an average price of Rs106.28 (US$ 1.66) per kg as of July 25, down from 138.36 million kg at an average price of Rs119.57 (US$ 1.87) per kg during the corresponding period of last year.

The board has reduced the Andhra crop size from 172 million kg for the 2014-15 season to 120 million kg for the 2015-16 season to reflect current market conditions, including the slump in demand from overseas.

Gopal is currently leading a delegation to China to promote Indian tobacco.