NELLORE: Traders participating in the auction are not considering the ‘B’ grade tobacco and farmers have only got Rs 170 a kg for ‘A’ grade this time as against Rs 180 last year. The auction of Tobacco Board started in the district on Monday.
Tobacco is cultivated under DC Palli and Kaligiri Tobacco Board auction platforms in the district. Nearly, 1,545 farmers have been cultivating the crop in 3,468 hectares under Kaligiri and 2,193 farmers in 4,505 hectares under DC Palli auction platforms.
The Tobacco Board permitted production of 10.8 million kg of tobacco this season. Tobacco, a commercial crop, is being cultivated in 13 mandals in Udayagiri, Atmakur and Kavali Assembly constituencies.
There have been restrictions on the cultivating area due to downfall in sales of 1.3 per cent across the country between 2013 and 2017 and now officials are warning the farmers to confine to the approved crop acreage for at least getting their investments.
Last year, farmers incurred losses due to quality issue where majority stocks of 2.5 lakh kg were low grade. But the farmers had overcome the problem due to strategic purchase plan attracting buyers where they get comfortable prices.
“There is a need to maintain the price of tobacco at Rs 180 - Rs 200 a kg to ensure profits to farmers this year. We have incurred losses with the yield of low-grade tobacco last season. Traders have to consider the hike in price for good quality tobacco in the auction,” said Ramana Reddy, a farmer from Marripadu mandal.On Monday auction at both DC Palli and Kaligiri platforms, farmers failed to attracts buyers. Traders from various companies have only purchased tobacco from farmers at Rs 170 a kg in the auction on the first day.DC Palli Tobacco Platform Auction Officer Devanand said that the price depends on the quality of tobacco.
“The Tobacco Board has been supporting the farmers in every manner to get a better price for their produce. Steps will be taken to increase the price for good quality tobacco after holding discussions with traders,” he said.
