Govt. calls for faster purchase of FCV tobacco, better prices for farmers

Agriculture Minister K. Atchannaidu. | Photo credit: File Photo

Andhra Pradesh Agriculture Minister Kinjarapu Atchannaidu has urged the Tobacco Board to expedite the purchase of Flue-Cured Virginia (FCV) tobacco and take steps to ensure remunerative prices for farmers.

The government will also work with the Tobacco Board to create awareness among farmers to limit FCV tobacco production to around 81 million kg during the 2026-27 season to help keep market prices stable, he says.

The minister said this during a teleconference on Friday to review the progress of FCV tobacco procurement in the state.

Mr. Atchannaidu said procurement had picked up momentum in the last four days, with close to 8.5 lakh kg of FCV tobacco being procured every day. Farmers were currently getting prices of up to ₹250 per kg and the Tobacco Board has been directed to coordinate with tobacco buying companies to secure even better prices for growers, the minister said.

Mr. Atchannaidu asked the Tobacco Board to liaise with supply companies and convince them to offer higher prices so that farmers get better returns. He also directed officials to hold discussions with tobacco buying companies to ensure that farmers producing low grade tobacco are not disadvantaged and receive favorable prices for their crops.

Ministers Gottipati Ravi Kumar and DSBV Swamy, Chairman Tobacco Board Chidipothu Yashwant Kumar, Managing Director B. Vishwasri and Director Agriculture Manazir Jeelani Samoon, among others, attended the meeting.

The BJP is asking the Centre

Meanhile, Andhra Pradesh BJP president PVN Madhav urged Union Commerce Minister Piyush Goyal to take immediate steps to resolve the FCV tobacco marketing crisis and protect the interests of nearly one million families in the state.

In a letter to the Union minister on Friday, Mr. Madhav said FCV tobacco growers are facing serious financial difficulties in marketing the 2025-26 crop due to slow procurement, falling prices and weak market conditions. He sought policy measures to improve market liquidity, strengthen procurement, promote exports and ensure remunerative prices for growers.

According to him, FCV tobacco is one of the major commercial crops of Andhra Pradesh, providing livelihood to nearly one million farming families, generating rural employment and earning valuable foreign exchange through exports. The current crisis is a result of higher cigarette taxation, excessive domestic production, increased production in competing countries, subdued global demand and reduced buyer participation on the Tobacco Board’s auction platforms, he said.

Mr. Madhav noted that while the Tobacco Board has permitted cultivation of 142 million kg, production is estimated at around 232 million kg, creating a large surplus. As of July 13, after 88 auction days, only about 33 million kg had been sold, leaving almost 85% of the crop unsold. The average auction price fell to ₹217.65 per kg, down about ₹45.80 from the same period last year, he said.

While appreciating the Tobacco Board’s efforts and Chief Minister N. Chandrababu Naidu’s directives to ensure procurement and keep prices above ₹200 per kg, Mr. Madhav said the prevailing situation required intervention from the Centre.

The BJP leader alleged that limited procurement by purchasing companies weakened competition and affected price realization, prompting protests and boycotts of auctions by farmers. “The Union Government must enable higher procurement, strengthen export promotion, improve global competitiveness and put in place support measures to ensure the long-term sustainability of the FCV tobacco sector,” he added.

Published – 17 Jul 2026 19:52 IST