Amaravati, Sep 6 (IANS) Andhra Pradesh Agriculture Minister Kinjarapu Atchannaidu said on Sunday that market conditions for Flue-Cured Virginia (FCV) tobacco auction in the state are gradually improving.

The minister revealed that 86.59 million kilograms of FCV tobacco had been marketed over 132 auction days by September 4.

He stated that while the permitted crop volume for the current season is 142 million kg, the estimated production is around 236 million kg. He said in a statement that the average price recorded so far is Rs 209.83 per kg.

The minister noted that during the same period of 132 auction days last year, 140.27 million kg of tobacco was marketed, with a final average price of Rs 248.86 per kg.

He stated that although there was some market pressure due to a surplus caused by high production this year, buyer response and competition in recent auctions have improved significantly.

He noted that on the instruction of Chief Minister Nara Chandrababu Naidu, the government is taking continuous measures to ensure a better market and remunerative prices for tobacco farmers.

According to the minister, he is personally reviewing the auction process and coordinating constantly with officials to prevent any difficulties for the farmers.

Atchannaidu noted that the percentage of ‘no-bid’ bales at auction centres has dropped significantly of late. Currently, the average daily rate of ‘no-bids’ stands at 11–12 per cent, with some auction platforms recording figures as low as 1–2 per cent.

The minister described the reduction in ‘no-bids,’ the increase in purchasing activity, and the heightened competition among buyers as positive market indicators. He mentioned that approximately 10 million kilograms of tobacco are currently being marketed weekly, adding that the growing competition among buyers is helping to secure better prices.

Atchannaidu stated that the Tobacco Board is continuously monitoring the tobacco marketing process. He stated that procurement is being expedited through coordination with farmers, manufacturers, exporters, and trade representatives. Discussions are underway with the trade community regarding measures such as ensuring the continuous participation of numerous buyers, purchasing marketable tobacco, minimising avoidable “no-bid” instances, maintaining an orderly procurement schedule, and facilitating the rapid marketing of the crop.

The minister noted that monitoring committees comprising farmers and trade representatives have been established, and senior officials are visiting auction platforms to promptly resolve issues at the field level.

Atchannaidu noted that a large volume of tobacco flooded the market this season due to a significant disparity between the authorised crop size and actual production, creating pressure on the market.

Taking this experience into account, the minister announced that the authorised crop size for FCV tobacco in Andhra Pradesh for the 2026–27 year has been reduced from 142 million kg to 81 million kg. He stated that the primary objective of this decision is to align production with market demand and prevent the accumulation of excessive marketable surplus in the future.

He added that the Tobacco Board is conducting extensive awareness campaigns to ensure farmers limit their cultivation to the authorised crop size next year.

The minister assured that the situation would be continuously monitored until the auction process concludes and that necessary support would be provided to the farmers.

–IANS

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