Andhra Pradesh tobacco auction conditions improving

Andhra Pradesh Agriculture Minister Kinjarapu Atchannaidu reported that market conditions for Flue-Cured Virginia (FCV) tobacco auctions in the state are improving. Despite a surplus caused by an estimated production of 236 million kg—well above the permitted crop volume of 142 million kg—increased buyer competition and a decline in ‘no-bid’ bales have stabilized the market.

As of September 4, 86.59 million kg of tobacco had been marketed over 132 auction days. The average price recorded so far is Rs 209.83 per kg, compared to an average of Rs 248.86 per kg during the same period last year. The minister noted that the daily rate of ‘no-bid’ bales has dropped significantly, with some auction platforms reporting figures as low as 1–2 percent.

The state government, under the direction of Chief Minister Nara Chandrababu Naidu, is monitoring the process through the Tobacco Board to ensure remunerative prices for farmers. Approximately 10 million kg of tobacco is currently being marketed weekly.