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Tobacco stock worth Rs 1,004.45 crore sold through auctions

The 123-day long tobacco auctions by the Tobacco Board concluded on Monday and stock worth Rs 1,004.45 crore were sold through these auctions.

Published: 01st September 2021 08:27 AM  |   Last Updated: 01st September 2021 08:27 AM   |  A+A-

Tobacco

Image of tobacco used for representational purpose. (File Photo)

Express News Service

ONGOLE: The 123-day long tobacco auctions by the Tobacco Board concluded on Monday and stock worth Rs 1,004.45 crore were sold through these auctions. Though the southern black soil (SBS) region authorities said the expected auction closing date was September 1, the auctions at the Tangutur Tobacco auction platform concluded on Monday evening.

With this, the tobacco auctions for the 2020-21 season at all 11 auction platforms under the southern light soil (SLS) and the SBS regions concluded. The board has mediated a total of 71.69 million kg tobacco production against the permission for production of 71.34 million kg under both the regions. Tobacco stocks were sold for Rs 544.49 crore in the SBS and Rs 459.96 crore in SLS regions respectively.

For this season, under the SLS region, five platforms conducted auctions—Podili, Kanigiri, Kandukur-1 , Kandukur-2, Kaligiri and the DC Palli (the last two belongs to SPSR Nellore district) and under the SBS region, five centres, including Vellampalli-II, Ongole-I, Ongole-II, Tangutur-I and Kondepi conducted the auctions. However, ITC became the major buyer in both regions.

A total of 32.55 million kg against the target of 32.58 million kg produce was purchased by the buyers in the SLS region at an average price of Rs 141.30 per kg, higher than the average price offered in the previous season auctions i.e. Rs 115.62 per kg.

“Though the Covid-19 second wave disturbed the schedule for this season, we have purchased more stock quantity-wise and price-wise also, we have  given a better price to the farmers with an average hike of around Rs 26 per kg,” Tobacco Board SLS regional manager Divi Venugopal explained.

In the SBS region, the tobacco growers received an average price of Rs 139.10 per kg, which was higher than Rs 116.09 per kg offered in the previous season. A total of 39.14 million kg produce was purchased against the estimations of 37.79 million kg.

“When compared with the previous season, we have offered better prices to tobacco growers. We have also purchased more than our expectations for this season and a total of 71.69 million kg was purchased,” Tobacco Board SBS regional manager B Manjunath told TNIE.

32.55 million kg sold
A total of 32.55 million kg produce was purchased by the buyers in the SLS region at an average price of Rs 141.30/ kg, higher than average price offered in the previous season auctions.


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Tobacco

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