YS Jagan Flags Sharp Fall in Tobacco Prices, Seeks Immediate Intervention

YSR Congress Party (YSRCP) president and former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy on Wednesday alleged that the N. Chandrababu Naidu-led government has failed to protect tobacco farmers, accusing it of allowing procurement prices to fall while cultivation costs continue to rise.

Speaking to the media after meeting tobacco farmers in East Godavari district, Jagan claimed that growers are being pushed into severe financial distress as auction prices have dropped significantly over the past two years. He said the average price of Flue-Cured Virginia (FCV) tobacco, one of Andhra Pradesh's key export-oriented crops, stood at Rs.289 per kg during the 2023-24 season but has now fallen to Rs.214 per kg. According to him, the decline has come despite a sharp increase in expenditure on labour, fertilizers, pesticides and curing, leaving farmers with shrinking margins.

Alleging that the procurement process lacks transparency, Jagan accused the state government of acting in favour of private tobacco companies instead of safeguarding farmers' interests. He said the recently announced Rs.20-per-kg subsidy would provide only marginal relief and would not compensate growers for the losses they have suffered due to falling market prices.

The former Chief Minister also drew attention to agricultural credit, stating that while the present government has announced interest-free crop loans up to Rs.50,000, the previous YSRCP government had extended the benefit for loans up to Rs.1 lakh. He claimed that farmers cultivating tobacco, paddy, banana and pulses are all struggling to receive remunerative prices for their produce.

Referring to the reported suicide of a tobacco farmer, Jagan alleged that the state government neither visited the bereaved family nor extended any financial assistance. He urged the government to take immediate corrective measures and demanded that MARKFED be brought back into the tobacco procurement process, arguing that its participation would improve competition and help ensure fair prices for farmers.

Jagan further warned that tobacco prices in Andhra Pradesh could weaken further once auctions commence in Karnataka, as buyers may shift their procurement to the neighbouring state. He stressed that immediate intervention is necessary to prevent farmers from suffering additional losses during the ongoing marketing season.

Meanwhile, YSRCP General Secretary MVS Nagi Reddy said tobacco farmers had invited Jagan to visit the auction platform to witness the prevailing situation firsthand. The party claimed that despite the Chief Minister's assurance against distress purchases, the average auction price has slipped to Rs.186.90 per kg.

The party also alleged that the Tobacco Board has not uploaded auction-related data including procurement volumes, prices and rejection details for the past ten days. It said the lack of timely information has created uncertainty among farmers, who rely on daily auction data to make informed selling decisions, and accused the government of remaining unresponsive despite mounting protests from growers.