Amaravati, Sep 6 (PTI) Andhra Pradesh Agriculture Minister K Atchannaidu on Sunday said market conditions in the ongoing 2025-26 Flue-Cured Virginia (FCV) tobacco auctions in the state have improved significantly, with a sharp decline in ‘no-bids’ and increased buyer competition.
The minister said the state government was taking measures to ensure better markets and remunerative prices for tobacco farmers.
“Market conditions in the ongoing 2025-26 Flue-Cured Virginia (FCV) tobacco auctions have shown a steady improvement, marked by a decline in ‘no-bids’ and increased competition among buyers,” said Atchannaidu in an official press release.
As of September 4, 86.5 million kg of FCV tobacco had been marketed over 132 auction days. Against the permitted crop quantity of 142 million kg, actual production this season was estimated at 236 million kg, the minister said.
The average price realised so far stood at Rs 209.83 per kg. During the corresponding 132 auction days last year, 140.27 million kg had been marketed at a final average price of Rs 248.86 per kg.
According to him, higher production had resulted in surplus tobacco and put pressure on the market, but buyer response and competition had improved significantly in recent auctions.
The percentage of ‘no-bid’ bales has declined substantially, with an average of 12 per cent being recorded daily and some auction platforms reporting less than 1-2 per cent.
Around 10 million kg of tobacco is currently being marketed every week, while increased competition among buyers is helping improve price realisation, he said.
The highest price of Rs 329 per kg was recorded in the Northern Light Soils (NLS) area, while the highest bids in the Southern Light Soils (SLS) and Southern Black Soils (SBS) areas stood at Rs 255 and Rs 252 respectively.
The Minister said the permitted FCV tobacco crop quantity in Andhra Pradesh for 2026-27 has been the highest price of Rs 329 per kg recorded in the Northern Light Soils (NLS) area, while the highest bids in the Southern Light Soils (SLS) and Southern Black Soils (SBS) areas stood at Rs 255 and Rs 252 respectively, reducing sharply from 142 million kg to 81 million kg to regulate production in line with market demand and prevent excessive surplus.
The Tobacco Board is creating awareness among farmers to restrict next year’s cultivation to the permitted quantity, he said. PTI MS ROH
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