ONGOLE: The Tobacco Board has concluded auctions at all 11 platforms under the Southern Light Soils (SLS) and Southern Black Soils (SBS) regions for the 2024–25 season.
Officials said growers produced nearly 52.05 million kg in excess of permitted limits, leading to a fall in prices in line with supply-demand principles and international market trends. Many farmers expressed dissatisfaction, citing heavy losses despite higher yields.
For this season, the Board permitted 147 million kg of production statewide, including 104 million kg for the Ongole-based southern regions. However, cultivation exceeded limits, with an estimated 157 million kg produced. By December 13, nearly 156.8 million kg—99.9 per cent of stocks—had been purchased.
Farmers blamed low prices on oversupply both locally and internationally, with increased production reported from Zimbabwe, Brazil and Tanzania. Auctions, which usually conclude by March, extended until December 13, lasting 222 days—the longest in the Board’s history.
Average prices fell to Rs 220.28 per kg, about Rs 45 lower than last season’s Rs 265. Farmers alleged that buyers acted as a syndicate to suppress rates.
Tobacco Board Ongole Regional Manager S Rama Rao urged growers to restrict cultivation to permitted limits, warning that international markets may not support higher prices. He said awareness campaigns are being launched to discourage excess planting.