ONGOLE: The auctions initiated by the Tobacco Board for the present season are going on at a brisk pace. Auctions in Prakasam district tobacco auction platforms are picking up pace with good demand in the international market and decrease in production in the last two years due to the Covid pandemic.Till date, around 55%of the target purchase has been completed and the auctions are likely to be completed by month-end. The Tobacco Board auctions tobacco from Southern Black Soils (SBS) and Southern Light Soils (SLS) region limits at auction platforms at Ongole, Vellampalli, Tangutur, Kondepi, Podili, Kanigiri, Kandukur and Kandukur in Prakasam district.
Another two platforms are at Kanigiri and DC Palli, in the neighbouring Nellore district. The tobacco auctions are being held in six platforms for the last 49 days and more than five weeks in the other centres.
By Friday (May 13), around 36.02 million kg of tobacco stock was auctioned out of the estimated total 69 million kg of produce this season. In fact, the Tobacco Board has set an auction target of 79.13 million kg for this season. Farmers cultivated the crop in 47,507 hectares under the SBS and SLS regions. Though the tobacco yield is lower than estimated target, farmers are happy as the prices are good.
“Farmers are getting an encouraging price of Rs 175-185 per kg for A Grade tobacco and the number of rejected bales has decreased this season. We are trying our best to provide maximum price for quality produce in all the auction platforms by making more buyers/agents attend the auctions every day. If the trend continues, the auctions will be completed by month-end or in the first half of the next month,” D Venu Gopal, Regional Manager SLS & SBS, Ongole, told TNIE. “This year, there is a good demand in the global market due to declining supplies,” Siva Kumar, ITC leaf manager, said.