Andhra farmers get 79 pc more price for tobacco

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{image-andhra pradesh_13072008.jpg}Hyderabad, Jul 13: Andhra Pradesh farmers have earned Rs 585 crore more on sale of FCV tobacco (used in cigarettes) on account of 79 per cent increase in auction price this year.

The farmers in Andhra Pradesh have earned Rs 1,401 crore in 2008 compared to Rs 784.82 crore in the previous year in spite of production going down to 165 million kg from 172 million kg recorded in 2007.The average price earned by Andhra farmers was Rs 84.75 per kg, a jump of 79 per cent over Rs 47.47 per kg in 2007. In Karnataka, per kg earning of FCV tobacco was Rs 59.23. The 79 per cent rise in price was an all-time record in the history of tobacco auction system which was introduced in 1984, according to an official statement. Exports of tobacco and its products also went up to 503 million dollars(Rs 2,023 crore) in 2007-08 compared to 382 million dollars (Rs 1,723 crore) in the previous year.

As much as 1,74,690 tonnes of unmanufactured tobacco was exported in 2007-08 as against 1,52,816 tonnes in the previous year. Export of tobacco products was to the tune of 30,657 tonnes as against 28,370 tonnes recorded in 2006-07.

Tobacco Board, which had introduced auctions, attribute the price improvement to effective measures taken by it in controlling cartels of traders as also excess production of tobacco.

This year auctions were concluded in 123 days as against 163 days it took last year.


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