Tobacco farming is back in favour with farmers in Andhra Pradesh as prices for tobacco leaf soar due to demand from overseas, reports The Hindu.

The average price for tobacco leaf has increased by over INR 30 (USD 0.38) per kilo with low-grade varieties gaining a record price of over INR 150 (USD 1.90) per kilo. By comparison, the same varieties were being sold for under INR 50 (USD 0.63) three years ago. As the auctions come to a close, growers have received INR 172.06 (USD 2.18) per kilo on average for 73.66 million kilos marketed up from INR 141 (USD 1.79) per kilo last year. The new revival of the leaf prices is believed to be down to an increase in overseas demand. According to The Hindu, exporters who, in the past, stayed away from the market due to non-confirmation of orders from their counterparts abroad, have now bought up leftover quantities of tobacco the farmers have brought to the auction platforms.
Tobacco Board member M. Subrahmanyeswara Reddy explained that a shortfall in tobacco output across the world had seen a rise in demand for Indian leaf which in turn pushed up the price. Another reason for the increased prices may be the fact that a lot of farmers have switched to pheromone traps and green manure to avoid pesticide and fungicide residue in their crops, reports The Hindu.
With 5.85 million kilos of tobacco left, the auctions are due to close within 100 days for the first time in several years as the farmers want to avoid discolouration and weight loss of their product.
“The auctions have been completed in five floors in the SLS region. They will be completed in 15 to 20 days in the leftover floors in the SLS and SBS regions if the traders are able to move the purchased tobacco quickly,” said SLS Regional Manager D. Venugopal.