‘Tobacco auction market improves, no-bids decline’

Metro India News | AMARAVATI 

Andhra Pradesh Agriculture Minister Kinjarapu Atchannaidu said the market situation in the 2025-26 FCV tobacco auctions was showing signs of improvement, with declining “no-bids” and increased competition among buyers leading to better prices in several auction centers. The Minister said the government, under the directions of Chief Minister N. Chandrababu Naidu, was continuously monitoring the auction process to safeguard the interests of tobacco farmers and ensure remunerative prices.

As of September 4, 86.59 million kg of FCV tobacco had been marketed over 132 auction days against the authorized crop size of 142 million kg. Actual production, however, was estimated at around 236 million kg, resulting in a significant surplus. The average price so far stood at Rs.209.83 per kg, compared with the final average of Rs.248.86 per kg last year. Atchannaidu said the excess production had initially put pressure on the market, but buyer participation and competition had improved in recent auctions.

“No-bid” bales currently account for an average 11-12 per cent of daily auctions, while the figure was below 1-2 per cent on some auction platforms. About 10 million kg of tobacco is currently being marketed every week, with increased competition among buyers supporting price realization, he said. Prices have also improved in several regions. The highest price in the NLS region reached Rs.329 per kg, while the top bids were Rs.255 in SLS and Rs.252 in SBS. Demand remains strong for certain grades and varieties, with purchase activity and price realisation in SLS and SBS improving over the past month.

The Minister said the Tobacco Board was coordinating with farmers, manufacturers, exporters and traders to accelerate purchases, reduce avoidable no-bids and ensure orderly marketing. Monitoring committees comprising farmer and industry representatives have also been constituted. Learning from the current season’s surplus, the government has sharply reduced the authorized FCV tobacco crop size for 2026-27 from 142 million kg to 81 million kg. 

Atchannaidu said the move was aimed at aligning production with market demand and preventing excessive marketable surplus. He assured farmers that the government would continue monitoring auctions until their completion and provide necessary support.