Karnataka tobacco see-saws at auctions

(Business Line) Tobacco prices are fluctuating between Rs 5 and Rs 10 a kg on a weekly basis at different auction platforms for the last one month.
The key reason attributed for the fluctuation is that the crop size is huge at around 130 million kg against authorised crop size fixed at 97.95 million kg and also when big tobacco companies descend on the market prices move up sharply and when small and medium companies enter the prices are correcting.
This fluctuation has led to a few farmers holding on the crop confused as to when to sell their produce, said Mr T Vikram Raj Urs, a tobacco grower and secretary Federation of Karnataka Tobacco Growers' Association farmer. Continued