Tobacco auctions resume as COVID-19 situation eases

Auctions have resumed on a promising word within the conventional tobacco rising areas in Nellore and Prakasam districts after a 16-day break, as the depth of COVID-19 has lessened throughout South Coastal Andhra Pradesh.

Anxious to liquidate the shares readily available and fearing deterioration within the high quality of the produce as and when the southwest monsoon units in, farmers introduced over 6,000 bales on the market within the 11 public sale platforms within the Southern Light Soil (SLS) and Southern Black Soil (SBS) areas until Tuesday night.

‘Good quality’

“After a gap of several years, we have a good quality crop. We will be forced to burn our fingers if there is any further delay in auctions on account of coronavirus,” mentioned a farmer from Kondepi, P. Bhadri Reddy, whereas ready for consumers as the sky remained overcast.

“Only domestic cigarette manufacturers are active in the market, while the exporters have selectively bought the bales of their liking. The latter are still adopting a wait-and-watch attitude on the pretext of non-confirmation of orders from overseas buyers,” complained a farmer, Ramanjaneyulu, on the Ongole II public sale platform.

The farmers urged the Tobacco Board to make sure that the exporters come to the market with full power in the course of the auctions, which had been suspended after some employees members and ‘hamalis’ contracted the virus.

The situation was comparatively higher this 12 months regardless of the partial curfew as the farmers had been saddled with a poor high quality crop throughout final 12 months when the entire lockdown hampered the auctions coincided with peak advertising season.

When auctions had been suspended this 12 months from May 14, farmers within the two districts had marketed 21 million kg, getting a median value of ₹159.95 per kg in opposition to 12.7 million kg offered in the course of the corresponding interval final 12 months at a median value of ₹144.77 per kg, Tobacco Board sources mentioned.

F1, F2 and F3 varieties accounted for bulk of the sale this 12 months, fetching a greater value of ₹178.80 per kg, ₹169.10 per kg, and ₹147.30 per kg respectively in opposition to the final 12 months’s value of ₹169.50 per kg, ₹169.90 per kg, and ₹134.30 per kg for the respective grades.

‘Markfed action a worry’

While the brilliant and medium grade varieties attracted consumers, there have been no takers for the low grade varieties within the wake of the Markfed, which intervened out there and purchased about 12.9 million kg, together with 11.9 million kg in SBS and SLS areas, offloading its shares on-line to merchants now.

“We are worried over the effect of the Markfed’s action on the market when we are struggling to sell our produce,” a gaggle of farmers in Ongole II public sale platform lamented.

The farmers within the SBS area had to date marketed 10.60 million kg at a median value of ₹156.68 and their counterparts within the SLS area 11.11 million kg at a median value of ₹162.30 per kg, the crop regulator mentioned.