Flue-Cured Virginia Tobacco growers in Andhra Pradesh are reaping higher prices this season at around Rs110 (approx US$2.68), with about 2mkg sold at a cumulative state average price for all grades of leaf at Rs77.14/kg (US$1.88) compared with last year's Rs47/kg (US$1.15), according to Tobacco Board Chairman J. Suresh Babu, who added that this is equivalent to an increase of 85% for tobacco in Andhra Pradesh. In an interview he said: "The major factor that contributed in the increased price was breaking the cartel which existed to fix the price per bale. The board and growers jointly decided not to allow traders to have their say on price. Significantly there were very few finalised orders placed on exporters and the traders were functioning in an open competition that was bringing prices closer to international markets, Brazil tobacco was ruling at $3.5 to $3.7/kg and Indian farmers had now reached almost $2.3/kg for higher grades." He later added that after 75 days of auctioning at all floors, 93mkg was sold and traders were expecting to buy around 160mkg at the Keesara and Bhadrachalam auction floors.
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