ONGOLE: Tobacco auctions for the 2024–25 season are nearing completion, with sales already concluded at nine of the 11 auction platforms under the SLS and SBS southern regions.
Buyers have purchased over 99% of estimated 157 million kg production from growers at an average price of Rs 223–Rs 224 per kg.
Flue-Cured Virginia (FCV) tobacco auctions effectively came to an end after the Tobacco Board initially permitted 104 million kg production and later revised the estimate to 157 million kg. Up to date, buyers have purchased 156.265 million kg through all 11 platforms. Officials expect auctions at the remaining two platforms to close on or before December 10.
Farmers received an average price of Rs 224 per kg this season, lower than last season’s average of Rs 265 per kg due to reduced demand in the global market. “We have got a good price for our tobacco stocks of bright quality with Rs 350 per kg in the initial days.
Later, buyers offered low prices. Stocks of many farmers were rejected as no-bid bales. Overall, this season remained a low-income one for most of us,” tobacco farmer N Subba Rao of Chimakurthy mandal told TNIE.
As farmers sought seedlings for the new season, nurseries increased prices to Rs 6,000–Rs 6,500 per bag to take advantage of demand. Prices have since fallen to Rs 2,000–Rs 2,500 per bag as demand dropped due to unfavourable weather.
Ongole Regional Manager S Rama Rao said, “For the present season, tobacco auctions entered the final phase and, out of 11 platforms, nine were closed. As the capacity of the Kondapi platform is comparatively low, auctions are progressing at a slow pace, and in Kandukur-1 auctions will close in a couple of days. We request tobacco farmers to restrict cultivation to Board-permitted limits and not go beyond it. As per the predictions, the international market may not be favourable for next season.”