Tadepalli, June 19: YSRCP General Secretary and former Vice Chairman of the Andhra Pradesh State Agriculture Mission, MVS Nagi Reddy, expressed serious concern over the worsening crisis faced by tobacco farmers in Andhra Pradesh, stating that prices continue to fall despite assurances given by the Chief Minister.
He said that on June 18, the Chief Minister reviewed the situation with Tobacco Board officials and tobacco-buying companies and reportedly directed them not to allow “no-bid” auctions and to ensure prices did not fall below Rs. 200 per kg. However, the very next day, average prices declined further and the number of rejected and no-bid bales increased, forcing hundreds of farmers to stage protests in Ongole.
Nagi Reddy said tobacco farmers have been pushed into severe financial distress within just two Rabi seasons. The state average auction price, which stood at Rs. 237.21 per kg on May 25, 2026, fell steadily to Rs. 235.63 on June 1, Rs. 232 on June 9, Rs. 230.58 on June 11, Rs. 228.60 on June 13 and Rs. 227.78 on June 15.
The situation is more alarming in Southern Black Soil regions, where the average price dropped from Rs. 224.45 on June 1 to just Rs. 182.09 per kg on June 19, with prices ranging between Rs. 160 and Rs. 250 per kg. In Southern Light Soil regions, the average price fell to Rs. 203.65 per kg on June 19.
He pointed out that farmers are suffering losses of nearly Rs. 60 per kg compared to the 2023-24 season average price of Rs. 288.65 per kg. When increased cultivation costs over the past two years are taken into account, farmers are losing at least Rs. 80 per kg.
Nagi Reddy said rejection rates have risen sharply. In Southern Black Soil auction centres, rejected bales increased from 28.44 percent on June 17 to 38.16 percent on June 19, while in Southern Light Soil centres they rose from 23.32 percent to 24.21 percent. Farmers incur an additional cost of around Rs. 2,000 for every rejected bale taken back from the auction platform.
He noted that even after 65 auction days, only 18.94 million kg of tobacco had been sold this season against an estimated production of 260 million kg. During the same period last year, 50.82 million kg had been auctioned.
Questioning the government’s inaction, Nagi Reddy said that during the previous YSRCP government, tobacco was procured through Markfed for the first time in history to support farmers. Despite the present crisis, the government has failed to initiate similar intervention measures to create competition in procurement and stabilize prices.
He said farmers have produced a good-quality crop with strong yields, but the continuous collapse in prices is pushing them into an unprecedented financial crisis. Unless remunerative prices are ensured, farmers will not be able to sustain cultivation or support their families. The government must immediately intervene to protect tobacco farmers and prevent the crisis from deepening further, he demanded.
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