Tobacco auctions in Prakasam and SPSR Nellore districts are underway and have gotten off to a positive start, reports the Hindu.

The crop regulator has cut the crop size by 15 per cent taking the global economic downturn due to COVID-19 into account, which will affect the demand-supply situation in the farmers’ favour. Furthermore, the Tobacco Board has taken up the farmers’ demand for a better average price with the Indian Tobacco Association. According to the Hindu, the good grade out-turn with bright grade varieties account for about 70 per cent of the produce and should also benefit the farmers.
According to the Hindu, on the first day of auctions, traders snapped up 5,600 kg of bright grade tobacco, which was being offered at INR 180 (USD 2.47) per kg on the Southern Black Soil(SBS) auction platforms and 14,222.30 kg on the Southern Light Soil(SLS) auction platforms.
State Energy Minister Balineni Srinivasa Reddy remarked that the State government would make sure that auctions were running smoothly and protect the farmers if need be. “We will not leave the farmers to fend for themselves in the event of any crisis,” he said, adding that the farmer-friendly government would closely follow the market condition and enter the market if needed to bail out the farmers, who were in debts for the last four years because of unfavourable climatic and market conditions.