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Andhra Tobacco prices set to surge following crop failures in Brazil and Indonesia
The Business Guardian
|May 03, 2024
Tobacco farmers in Andhra Pradesh are poised to gain following decreased crop yields in Brazil, Zimbabwe, and Indonesia due to adverse weather conditions.
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Auction prices in Andhra have surged to near-record levels and are anticipated to escalate further in the upcoming weeks, ranging from Rs 280 to Rs 290 per kg. Experts predict prices to exceed Rs 300 per kg, representing a 30% increase from initial farmer expectations.
The spike in auction prices is attributed to the participation of small-scale players offering competitive bids. Despite initial concerns about surpassing the Indian Tobacco Board’s target production of 140 million kg, Andhra Pradesh farmers are expected to benefit. The board projects total production to reach 160-170 million kg, as reported.
Trade analysts attributed the price increase to crop damage in Brazil and Zimbabwe.
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