BANGALORE: Prices of FCV (Flue-Cured Virginia) tobacco in the ongoing auctions in Andhra Pradesh have touched all-time high. At the end of May 8, the 76th day of the AP auction conducted by the Tobacco Board, 111.33 million kg (mkg) had been sold for an average per kg price of Rs 78.44, almost 63% higher than the average of Rs 47.59 realised from the sale of 110.85 mkg in the corresponding period of last year’s auction.
Industry sources say the steep spurt in prices is because of a global supply constraint following factors like withdrawal of Chinese cigarettes from the export market because of stock adjustments to meet rising domestic demand. All of this has seen auction prices for high grades from AP’s NLS (Northern Light Soil) region crossing the per kg price of Rs 100 for the first time ever.
Prices for NLS high grades are ruling in the range of Rs 105 to Rs 118 per kg. With 111 mkg being auctioned out of this year’s AP crop of 170 mkg, farmers expect the brisk pace of sales to continue and the auction to be completed by the middle of June.
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