look news india
Mumbai: Due to the adverse impact on tobacco crops in some countries of the world, Indian tobacco producers are seeing the possibility of huge profits. Unseasonal rains and drought conditions in Brazil, Indonesia and Zimbabwe have reportedly adversely affected tobacco crops. Brazil, Indonesia and Zimbabwe are major tobacco producing countries.
According to sources at the Guntur, Andhra Pradesh-based Tobacco Board, the auction saw tobacco prices at Rs 285 to Rs 290 per kg, 25 to 28 per cent higher than tobacco growers' expectations. Its price is also expected to be Rs 300 in the upcoming auction.
Apart from Andhra Pradesh, Karnataka also saw new high in tobacco prices. In the recently concluded 2023-24 season, tobacco prices in Karnataka rose to an average of Rs 258 per kg.
The auction has seen rising prices due to local and small buyers offering competitive prices.
Tobacco production in the country is 14 crore kg. Rs 16 to 16.50 crore per gram was more than expected. Gram. Despite the fear of decline, prices are showing strength.
Market circles said domestic prices were supported by China's ban on tobacco exports to protect the safety of its cigarette makers following reports of a drawdown in global tobacco stocks. The market also expects prices to remain high as there is an imbalance between demand and supply.
To take advantage of rising prices in the global market, small players are seen buying tobacco and storing it.
Production in Brazil fell to 440 million kilograms from expectations of 550 million kilograms. Gram. Whereas production in Zimbabwe fell to 245 million kilograms against the expectation of 300 million kilograms. Gram. There were reports of