VIJAYAWADA: The Southern Black Soils (SBS) and Southern Light Soils (SLS) regions are eagerly awaiting the Tobacco Board’s permission to purchase excess tobacco produce through the auction platforms.
So far, buyers have acquired approximately 90.1 million kgs of tobacco from farmers, with auctions currently active at the Podili and Tangutur-1 platforms. The board authorities anticipate receiving the necessary permissions soon, which would allow for the purchase of excess stocks, potentially extending the auction season by another month and increasing farmers’ profits.
The auctions across all 11 platforms in the Prakasam and Nellore districts, including six SLS platforms (Podili-1, Kanigiri, Kandukur-1 & 2, Kaligiri, and DC Palli) and five SBS platforms (Vellampalli-2, Ongole-1 & 2, Tangutur, and Kondepi), are progressing well. Authorised tobacco quantities have already been purchased at four SBS platforms and five SLS platforms, with the auctions concluding on Tuesday.
Tobacco growers are benefiting from higher prices due to strong international market demand. Exporters and buyers are bidding competitively for quality-grade tobacco stocks, with prices reaching record highs of Rs 366, Rs 365, and Rs 357 per kg. The highest price of Rs 377 was offered in the Northern Region, while Southern region growers achieved the second highest prices this season.
A tobacco grower from Ongole M Veeranjaneyulu, expressed optimism about the current season and future trends, noting that farmers have cultivated extra tobacco beyond permitted quantities, awaiting the board’s permission to sell the excess.
“Given the favourable prices over the last two seasons, we expect the same trend next season. This season, we cultivated tobacco on an additional hectare and are now waiting for permission to sell the excess stock at the auction platforms, as assured by officials,” he said.
Regional Manager (RM) of the Ongole Tobacco Board, M Lakshmana Rao, confirmed that nearly 90.1 million kgs of tobacco have been purchased, exceeding the authorised quantity of 88 million kgs. “With the Central government’s assurance of permission for purchasing excess production, we expect orders soon. If granted, the auctions could continue for another month,” he told TNIE.