Monday, July 14, 2008

Andhra Pradesh tobacco farmers get high returns

by Ed Roberts

Tobacco farmers in the south Indian state of Andhra Pradesh, have made Rs 5.8492 billion ($ 146.2 million) more than what they did in last year’s auctions.

The farmers produced 165 Million Kgs of flue-cured Virginia (FCV) tobacco, compared to last year volume of 172 Million Kgs, earning an all-time high income of Rs 14.01 billion ($350.2 million), compared to Rs.7.8482 billion ($196.2 million) during last year.

This year, the average rate per kg was Rs 84.75 ($2.11), up 78 per cent.

Last year, the farmers sold tobacco at a rate of Rs 47.70 ($1.19) per kg.

The tobacco auction during the year 2008 is the record highest since the introduction of the auction system in the year 1984.

Moreover, this year’s action concluded in a record time of 123 auction days compared to the previous year’s duration of 163 auction days.

The highest price paid on a single day during the season was Rs 141.60 ($3.54) for the northern light soils (NLS) tobacco.

However the season began with Rs 58 ($1.45) a kg.

The farmers also earned $2 a kg, on a par with their foreign counterparts.

Growers of NLS in Godavari district pocketed the highest average of Rs 99.09 ($2.47) a kg, followed by central black soils (CBS) in Krishna district at Rs 83.75 ($2.09) per kg.

Reaching the highest record, the exports of tobacco and tobacco products stood at $ 503 million compared to the previous year record of US $ 382 million.

The total quantity of un-manufactured tobacco exported was 1,74,690 MT compared to the previous year which was 1,52,816 MT.

The volume of tobacco products exported was 30,657 MT compared to previous year which was 28,370 MT.

The Tobacco Board has introduced an electronic auction system on a pilot basis to replace the existing manual system of auction.

 

 

 

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