The Tobacco Board has resolved to pick up 20 million kg of low-grade tobacco at the ongoing auctions in Andhra Pradesh at a minimum support price (MSP) ranging from Rs. 11.30 a kg to Rs. 15.60, depending on the grade. Andhra Pradesh Govt. had urged the Union commerce ministry to intervene in the market following demands form the Virginia Tobacco Growers Association as reported. India exports over 50% of its FCV (flue-cured Virginia) tobacco but prices have crashed falling a glut in the international market. The AP govt. had prevailed on the commerce ministry to follow a two-pronged strategy. The State Trading Corporation (STC) has been asked to pick up some six million kg of better quality tobacco at prices 10% higher than the previous season’s average. While STC has been taking the high road, the Tobacco Board is now following the low one in terms of purchasing the low quality grades at an MSP, as reported by AP Market source. |
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