E-auction of tobacco boon for farmers

With the introduction of the first electronic auction system for tobacco in the world, the process is all set to become more transparent and efficient. The system introduced by the Central Council of tobacco Friday in Periyapattana, is expected to put an end to the threat of intermediaries and the exploitation of farmers at the auction yards.

E-auction system that will maintain the flow of the lighter soils of Karnataka (KSL) shares tobacco cigarette manufacturers, officials will also check fake notes.

According to sources, the international brand of cigarette smokers will be easy to distinguish between cigarettes manufactured using Virginia tobacco and tobacco KSL.

In terms of quality and taste, KSL tobacco is superior to Virginia tobacco. KSL tobacco is the most popular manufacturers of various international brands of cigarettes.

Tobacco Board (auction) Manju Pillai told TOI, that the electronic auction system developed and implemented a fee fraud and eliminates the role of intermediaries, customers and companies from interference or manipulation of the price of tobacco products.

Explaining the procedure, she said, as quoted by the buyer for the price of a particular stock, it gets blocked and there is no chance for the buyer or the officials to reduce or increase the price.

“Before, while mediators forged prices specified by the buyer, the acquisition of companies is dictated by conditions on the establishment of a minimum price for the day. Under the current system, the auction will begin with a base price of the average price over the previous three days for a particular grade or quality of tobacco. Will end the highest bid price the buyer and the price specified by the buyer is recorded and the system will be locked to that particular lot of tobacco use, “she said.

Extreme example of the auction last Friday, Manju Pillai said tobacco auction began with a minimum price of Rs 101 per kg of the best quality tobacco and it ended around Rs 170 per kg.

Earlier, farmers used to get low prices for this kind of tobacco, she said, adding that at the moment, farmers are pleased at the price they fetch for their products. This is the first electronic auction market in the world, she said.


* KSL Tobacco is the world’s most sought-after producers,

* The average of Rs 4,000 crore from the Karnataka tobacco for export.

* 80% of the tobacco grown in Karnataka KSL quality tobacco.

* Farmers who have suffered losses due to the buyer control over the market are exempt from many of the electronic auction product.

* Manufacturers may not be at the mercy of intermediaries in getting KSL shares with no opportunity for resellers and customers to create a shortage of products for various reasons.

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