Farmers in Andhra Pradesh have voiced significant concerns regarding the slow pace of tobacco procurement and prevailing low prices, prompting a meeting with YSR Congress Party (YSRCP) president Y.S. Jagan Mohan Reddy. The farmers highlighted that despite the auction process commencing approximately 94 days prior, procurement remains far from complete, leading to severe financial distress for thousands of growers across districts including Eluru, West Godavari, East Godavari, and Prakasam.
Farmers Detail Grievances to YSRCP Chief
Information available with The Chenab Times indicates that the farmers met Mr. Jagan Mohan Reddy at the YSRCP central office in Tadepalli, detailing their grievances. They reported that a substantial percentage, around 30% to 40%, of tobacco bales were experiencing ‘no bids’ or rejections during auctions. This situation forces farmers to incur additional costs of approximately ₹1,000 per bale for transportation, handling, and re-auction expenses. A critical concern raised was the potential shift of traders to Karnataka for auctions in Mysuru before Andhra Pradesh completes its procurement, which could leave unsold tobacco stocks in Andhra Pradesh without buyers.
The farmers also expressed alarm over the significant financial losses, with reports suggesting a potential loss of ₹3,100 crore for tobacco farmers in Andhra Pradesh. They noted that sales, which typically conclude by July, were still ongoing, creating uncertainty regarding the disposal of their produce. The price of tobacco has reportedly fallen to around ₹130 per kg, a steep decline from the Chief Minister’s earlier stated expectation of prices not falling below ₹200 per kg.
YSRCP Pledges Support and Action
Responding to the farmers’ plight, Y.S. Jagan Mohan Reddy assured them of the YSRCP’s commitment to fight for fair prices, timely procurement, and overall justice for the farming community. The party indicated it would intensify its efforts to pressure the government to address these pressing issues. Mr. Jagan Mohan Reddy also announced plans for the YSRCP to undertake a series of tours across major tobacco-growing regions to mobilize support and highlight the farmers’ difficulties.
Reports suggest that Mr. Jagan Mohan Reddy plans to visit areas such as Gopalapuram or Jangareddygudem in West Godavari district, followed by Kandukur, to exert pressure on the current state government. The YSRCP has accused the ruling coalition government of failing to procure even 10% of the total tobacco output, leaving farmers vulnerable to middlemen and trader syndicates. The party has alleged that despite complaints of market manipulation, no action has been taken against traders, with no criminal cases registered and no licenses cancelled.
Government’s Role and Previous Interventions
The current crisis has been exacerbated by a significant demand-supply gap. While tobacco firms collectively placed indents for 142 million kg, farmers produced an estimated 232 million kg this season, according to data from around July 2026. This surplus, coupled with a decline in exports, has impacted the industry’s purchasing capacity. The Chief Minister, N. Chandrababu Naidu, had previously directed tobacco companies to expedite procurement and adhere to the minimum support price of ₹200 per kg. However, major manufacturers like ITC Limited, Godfrey Phillips India Ltd., and VST Industries Ltd. reportedly fell short of their procurement commitments.
The YSRCP has drawn comparisons to its previous term, highlighting the establishment of a ₹3,000 crore Market Intervention Fund to manage price fluctuations and the procurement of crops worth ₹7,800 crore. Systems like Rythu Bharosa Kendras (RBKs) and the Continuous Monitoring of Agriculture Prices and Procurement (CMAPP) were also in place to monitor prices and ensure remunerative returns for farmers. The party advocates for the government to deploy MARKFED to procure tobacco and create market competition, a practice they claim proved successful previously.
The situation underscores the complex challenges faced by tobacco farmers in Andhra Pradesh, including production planning, procurement bottlenecks, and the influence of market forces. The YSRCP’s engagement signals a continued political focus on agricultural issues in the state, with the party vowing to maintain agitation until justice is served to the tobacco growers.
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The Chenab Times News Desk
