With possible local restrictions looming and exporters not following through on purchases, tobacco farmers have said they will be forced to stall auctions if the market price for their produce does not increase, reports The Hindu.

Not only have natural disasters such as cyclonic storm “Nivar” threatened the crop but the rise of COVID-19 cases has led to an uncertainty amongst tobacco traders. Exporters have adopted a “wait-and-watch” attitude, which is reminiscent of last season when the worldwide pandemic caused disruption in trading for over a month, according to The Hindu.
Initially, the season, which began in March, was off to a good start with bright grade tobacco varieties selling for up to INR 250 (USD 3.31) per kg in Karnataka. However, a month later the market went south, inducing a correction of INR 10 to INR 30 (USD 0.13 to USD 0.40) per kg depending upon the variety of tobacco offered.
With authorities discussing local restrictions in the red zones and traders offering lower prices due to the uncertainty of the pandemic, farmers are ready to pull the plug on the auctions.
“We will not hesitate to stall the auction from next week if the market continues to remain lacklustre,” Mr. V.V. Prasad, Farmers’ Welfare Association leader in Ongole II auction platform, told The Hindu.
“We have no option but to stall auctions in the absence of concrete steps by the Union and State governments to revive market buoyancy,” confirmed Vellampalli II Tobacco Growers’ Association president N. Chimpriya.