Record flavour for K’taka tobacco sale
This season’s Karnataka auction for the FCV (Flue-Cured Virginia) tobacco (smoked in cigarettes) has ended on a very successful note, surpassing all records both in terms of the overall quantum transacted and the average price realised.
By Raghu Krishnan, TNN |
BANGALORE: This season’s Karnataka auction for the FCV (Flue-Cured Virginia) tobacco (smoked in cigarettes) has ended on a very successful note, surpassing all records both in terms of the overall quantum transacted and the average price realised.
Which is quite unusual in the marketing of any commodity where the greater the quantity transacted in a season, the lower the price realised. One reason for the reversal of this cyclical trend is the impact of global factors like a 10% decline in the previous Brazilian FCV tobacco crop (from 700 million kg to 630) and the continuing turmoil in Zimbabwe whose crop has been affected by PM Mugabe’s ongoing programme of appropriating a portion of the large white-owned farms to resettle those involved in the struggle against colonialism.
Local industry sources say the records by way of both seasonal offtake and prices was due to higher crop-volumes being combined with improved productivity and better quality levels, thanks to the successful ongoing programme of a core committee consisting of major domestic manufacturers, the Central Tobacco Research Institute (CTRI) and the Tobacco Board which also conducts the auctions. After Andhra Pradesh, Karnataka is India’s second biggest FCV tobacco-growing state.
The overall quantum of Karnataka FCV tobacco marketed this season was 96.9 million kg (up 14.1 million kg or 17% higher than the previous year’s 82.9 million kg). The average per-kg price realised this season was Rs 55.94 (up Rs 7.88 or higher by 16% than last season’s Rs 48.06).
Out of this Karnataka auction-sale of 96.9 million kg (up from the previous season’s 82.9 million kg), the superior bright grades accounted for 33.3 million kg which were transacted for an average per- kg price of Rs 65.33 (up from 23.54 million kg of bright grades, averaging Rs 61.47).
This season’s medium grades accounted for 40.06 million kg, averaging Rs 57.23 a kg (34.9 million kg, averaging Rs 51.45). This season’s low grades accounted for 23.7 million kg, averaging Rs 40.58 a kg (24.5 million kg, averaging Rs 30.35).
Which is quite unusual in the marketing of any commodity where the greater the quantity transacted in a season, the lower the price realised. One reason for the reversal of this cyclical trend is the impact of global factors like a 10% decline in the previous Brazilian FCV tobacco crop (from 700 million kg to 630) and the continuing turmoil in Zimbabwe whose crop has been affected by PM Mugabe’s ongoing programme of appropriating a portion of the large white-owned farms to resettle those involved in the struggle against colonialism.
Local industry sources say the records by way of both seasonal offtake and prices was due to higher crop-volumes being combined with improved productivity and better quality levels, thanks to the successful ongoing programme of a core committee consisting of major domestic manufacturers, the Central Tobacco Research Institute (CTRI) and the Tobacco Board which also conducts the auctions. After Andhra Pradesh, Karnataka is India’s second biggest FCV tobacco-growing state.
The overall quantum of Karnataka FCV tobacco marketed this season was 96.9 million kg (up 14.1 million kg or 17% higher than the previous year’s 82.9 million kg). The average per-kg price realised this season was Rs 55.94 (up Rs 7.88 or higher by 16% than last season’s Rs 48.06).
Out of this Karnataka auction-sale of 96.9 million kg (up from the previous season’s 82.9 million kg), the superior bright grades accounted for 33.3 million kg which were transacted for an average per- kg price of Rs 65.33 (up from 23.54 million kg of bright grades, averaging Rs 61.47).
This season’s medium grades accounted for 40.06 million kg, averaging Rs 57.23 a kg (34.9 million kg, averaging Rs 51.45). This season’s low grades accounted for 23.7 million kg, averaging Rs 40.58 a kg (24.5 million kg, averaging Rs 30.35).
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