To address the oversupply issue, the government is planning awareness programmes from June 2025 to discourage excessive HD Burley cultivation and encourage shifts to other commercial crops.
Published May 18, 2025 | 10:56 AM ⚊ Updated May 18, 2025 | 10:56 AM
Drying tobacco leaves. (iStock)
Synopsis: Andhra Pradesh has been witnessing an oversupply of tobacco on account of the cultivation of the crop, and hence a fall in market prices. Chief Minister N Chandrababu Naidu issued directions to officials to ensure that the farmers’ interests are protected.
Tobacco farmers in Andhra Pradesh are facing an uncertain future due to a price crash caused by a surplus in supply.
In the 2024-25 season, there has been an oversupply of tobacco on account of the cultivation of the crop in a record 190,456 hectares. It led to a yield of 450 million kg of Flue-Cured Virginia (FCV), White Burley, and HD Burley varieties.
Several farmers have diversified to tobacco as it was becoming difficult for them to manage pests that are affecting regular cash crops like chilli and cotton.
When Human Resources Minister N Lokesh visited Ammanbrolu in Praksam district on 15 May, farmers requested him to ensure that they would get a good price for their produce. They told him that the stocks were lying unsold as the price offered was very low.
The farmers expressed their frustration over traders’ refusal to buy stocks, citing weak global demand, and the rejection of produce at auctions, citing poor quality. Lokesh spoke to Agriculture Minister K Atchan Naidu, urging him to take up the issue with the tobacco board, and the Union Commerce Ministry if needed. He assured farmers of the state government’s support and promised to ensure that the centre would take steps to stabilise the market.
Chief Minister N Chandrababu Naidu, addressing the crisis at a review meeting at his Undavalli residence on 16 May, issued directions to officials to ensure that the farmers’ interests are protected.
The present prices offered at auction platforms are: ₹200 to ₹240 (FCV), ₹120 to ₹150 (White Burley) and ₹40 to ₹100 (HD Burley). Of the three varieties, HD Burley faces the most severe price crash due to overproduction.
Naidu ordered traders to purchase tobacco at a minimum of ₹12,500 per quintal (₹125 per kg) for HD Burley, ensuring farmers do not incur losses. Companies like Godfrey Phillips India Ltd (GPI) and ITC have been asked to procure 20 million kg immediately.
The chief minister said that all existing tobacco stocks with farmers should be procured without delay. “No stocks should remain unpurchased with farmers, either at their homes or in the field,” he said.
Naidu directed that a control room be set up and a WhatsApp group created to monitor daily procurement. The Agriculture Department has been asked to submit reports once every two days. Traders must provide a detailed report on purchases and prices by Monday, 19 May.
To prevent future crises, Naidu proposed a buyback policy, urging farmers to enter agreements with companies. The Tobacco Board will oversee implementation to ensure fair pricing in tune with global demand.
To address the oversupply issue, the government is planning awareness programmes from June 2025 to discourage excessive HD Burley cultivation and encourage shifts to other commercial crops. Naidu emphasised that crop diversification is key to protecting farmers from market volatility.
He also sounded a warning to traders that failure to resolve the crisis would lead to strict action. He said that he would not tolerate injustice to farmers, no matter what. He cautioned that continued exploitation could drive farmers away from tobacco cultivation, risking the collapse of the industry.
The chief minister was also not happy with the companies creating a cycle of high expectations and price crashes, leaving farmers to their fate. He said it was necessary to regulate the cultivation area based on international demand.
(Edited by Muhammed Fazil.)
