Crack down on tobacco syndicates and cut profits: Atchannaidu Tobacco Board

Andhra Pradesh Agriculture and Marketing Minister K. Atchannaidu. File | Photo credit: Special arrangement

Andhra Pradesh Agriculture and Marketing Minister K. Atchannaidu has asked the Tobacco Board to take strict action against companies forming syndicates to curb profitability.

On Friday (July 3, 2026), Mr. Atchannaidu addressed officials via teleconference on the tobacco auctions, saying that all auction platforms must start functioning at once and every company should participate in the auctions.

He called for efforts to reduce tobacco rejection rates and warned of tough action against companies that cap prices on good quality packs to cut costs.

The Minister also insisted that companies should buy all grades of tobacco and wanted the Tobacco Committee to keep a close eye on all purchases. He stressed the need to educate farmers to bring their produce to auctions in accordance with the guidelines of the Tobacco Board. Farmers would thus obtain better prices and reduce rejection rates.

The government will consult the Tobacco Board and banks to extend credit to farmers who come to store tobacco, Mr. Atchannaidu said, adding that farmers’ interests should never be harmed.

Ministers Gottipati Ravi Kumar and Dola Sri Bala Veeranjaneya Swamy, Tobacco Board Chairman C. Yashwanth Kumar and others were present.

Published – 03 Jul 2026 13:31 IST