ONGOLE: The Tobacco Board is set to conclude the ongoing extended purchase of the season by October 1st week.
Auctions were already closed on four platforms at DC Palli and Kalikiri in Nellore district, Kanigiri and Ongole-2 in Prakasam district.
The auctions in Tanguturu-2 and Podili will be closed in a couple of days as well. The remaining six platforms: Kandukur-1 and 2, Ongole-1, Tangutur-1, Vellampalli-2 and Kondapi will close in the next month.
The regular tobacco purchase auctions were closed in July.
It may be mentioned here that the Tobacco Board had initially approved purchase of around 89 million kg of produce from the Southern Light Soil (SLS) and Southern Black Soils (SBS) regions.
However, due to the increasing demand for tobacco in international markets and profitable price offers from the exporters and purchasers, the farmers requested the board and government approval for the purchase of excess production on regular business terms.
“We have increased the extent of tobacco crop cultivation this year to four acres from the previous two acres due to profits last year. Our expectations came true as we reaped profits this season with the purchasers offering prices from Rs 260 to Rs 358 per kg for top grade produce. Therefore, we are planning to increase the acreage further next season to 5 or 6 acres. Although the cost of cultivation increased enormously, we feel that the demand stays intact, resulting in profitable prices in the next season as well,” said G Rama Krishna, tobacco grower from Chimakurthy mandal, told TNIE.
Based on the farmers’ request, the Tobacco Board had agreed to continue the auction to purchase the excess produce and revised the purchase estimates to around 142 million kg.
Even though the estimates were increased substantially, the farmers have auctioned about 148 million kg till Thursday (September 26). Of the 148 million kg, 69.487 million kg is from SLS and 78.504 million kg is from SBS regions. It is expected that the final figures of total purchases may reach the 150 million kg mark this year, courtesy of ongoing auctions on six more platforms.
On September 26, the tobacco growers of SBS region received an average price of Rs 282.55 per kg and a maximum price of Rs 358 per kg for the top grade quality and Rs 160 per kg for lowest-grade bales. Similarly in the SLS region, farmers got Rs 358 per kg for top grade quality and rs 135 for the low grades.
“As the tobacco growers under the Tobacco Board-SBS and SLS regions have been earning profits in the last two consecutive seasons, and are planning to increase the crop area for the next season, however, it is not advisable at all.
Though we are making repeated requests, the farmers are adamant regarding this and are trying to cultivate to the maximum extent possible because of increasing demand in international markets.
However, the demand in the international market is more dynamic and unpredictable. We request the tobacco growers not to invest more for excess cultivation in the upcoming season and to move for alternate crops,” said M Lakshmana Rao, Tobacco Board Ongole Regional Manager (RM).
