Andhra sales open with optimism

Tobacco growers in Andhra Pradesh, India, have expressed optimism at the start of this year’s flue-cured tobacco auctions, according to a story in the most recent issue of the BBM Bommidala Group newsletter.

Growers were said to have indicated that market sentiment was positive this year, unlike last year.

After 25 days of sales, 5.85 million kg of flue-cured had been sold for an average price of Rs138.72 per kg.

During the same period of last year, 3.85 million kg had been sold for an average price of Rs118.09 per kg.

This year, bright grade tobacco, which during the first 25 days had made up more than 87 percent of the sales, had fetched an average price of Rs140 per kg; up from Rs120.58 per kg last year.

In the state of Karnataka, flue-cured tobacco auctions closed on March 16 after 125 days of sales during which 71.95 million kg of tobacco had been sold for an average price of Rs135.24 per kg.

Last year, the selling season lasted for 175 days and saw the sale of 103.4 million kg of flue-cured for an average price of Rs107.49 per kg.

The increase in the average price this year was said to have been due to a shortfall in the crop. In total, 71.95 kg was sold against an authorized crop size of 100 million kg.

Meanwhile, Karnataka’s authorized 2016-17 crop has been set at 95 million kg.