Global firms turn to Indian tobacco; scour Karnataka
Wednesday, October 06, 2021 4:54 PM

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Anil Urs

Hubli, Oct 6

Global tobacco majors have begun to tour the tobacco-growing regions in Karnataka.

Tobacco companies participating at the Global Tobacco Networking Forum (GTNF) meet being held at Bangalore have begun to tour the tobacco growing taluks in Mysore district.

Fall in output

Flue Cured Virginia (FCV) or commonly called Virginia or cigarette tobacco is grown extensively in light soil mainly in the taluks of Periyapatna, Hunsur and H D Kote in Mysore district.

Global tobacco companies have shown interest in India after the steep decline in tobacco output in key growing countries such as Zimbabwe and Kenya in Africa and Spain in Europe.

A delegation from British American Tobacco toured and interacted with the growers on Tuesday.

A similar delegation from Philip Morris (NYSE:MO) International (NYSE:PM) is expected to tour on October 9.

‘preferred choice'

According to Tobacco Board official, “FCV tobacco grown in Karnataka and has low nicotine and is a good neutral filler and blends well with any tobacco. Hence it has become a preferred choice for foreign companies.”

“Companies before placing orders with their trade counterpart in India, always tour and assess the crop every year before they take part in the Karnataka tobacco auctions in large numbers,” the official said.

Auctions

The board official also said the quality of this year's crop is good compared to last year. “Rains at regular interval in April to July and early August have facilitated early growth. Quality and quantity is also much better,” he added.

Since tobacco is a restricted crop in the country, Tobacco Board has fixed 100 million kg for Karnataka.

At the end of 13th day of auctions, about 8.52 lakh kg of FCV tobacco variety were marketed at various platforms in Karnataka. Of the quantity marketed, Bright grades comprised of 35.64 per cent, and traded at an average price of Rs 124.83 a kg. Medium grades comprised of 52.18 per cent traded at an average price of Rs 109.16 a kg, and low grades comprised the rest traded at an average price of Rs 71.78 a kg.





 

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