Andhra Minister Calls for Faster FCV Tobacco Procurement, Higher Farmer Prices

Andhra Pradesh Agriculture Minister Kinjarapu Atchannaidu has urged the Tobacco Board to accelerate the procurement of Flue-Cured Virginia (FCV) tobacco and ensure remunerative prices for farmers. The minister made these remarks during a teleconference on Friday to review procurement progress in the state.

According to the minister, procurement has gained momentum over the past four days, with nearly 8.5 lakh kg of FCV tobacco purchased daily. Farmers are currently receiving prices of up to ₹250 per kg. The Tobacco Board has been directed to coordinate with buying companies to secure better prices for growers. The minister also instructed officials to engage with companies to ensure that farmers producing lower-grade tobacco receive fair prices.

The government plans to work with the Tobacco Board to create awareness among farmers about limiting FCV tobacco production to around 81 million kg during the 2026-27 season. This measure aims to maintain stable market prices. Ministers Gottipati Ravi Kumar and D.S.B.V Swamy, Tobacco Board Chairman Chidipothu Yashwant Kumar, Executive Director B. Vishwasri, and Director of Agriculture Manazir Jeelani Samoon participated in the meeting.

Separately, Andhra Pradesh BJP president P.V.N. Madhav urged Union Commerce Minister Piyush Goyal to address the crisis in FCV tobacco marketing. In a letter on Friday, Madhav said FCV tobacco farmers face severe financial distress due to sluggish procurement, declining prices, and weak market conditions during the 2025-26 crop marketing. He called for policy measures to improve market liquidity, enhance procurement, promote exports, and ensure remunerative prices.

Madhav noted that FCV tobacco supports nearly one lakh farming families in Andhra Pradesh, generates rural employment, and earns foreign exchange. He attributed the current crisis to higher taxation on cigarettes, excess domestic production, increased output in competing countries, subdued global demand, and reduced buyer participation at Tobacco Board auctions.

According to Madhav, while the Tobacco Board authorised 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 nearly 85% unsold. The average auction price had fallen to ₹217.65 per kg, about ₹45.80 lower than the same period last year.

Madhav appreciated the Tobacco Board's efforts and Chief Minister N. Chandrababu Naidu's directions to ensure procurement and maintain prices above ₹200 per kg. However, he said the situation requires central intervention. He alleged that limited procurement by buying companies has weakened competition and affected price realisation, leading to farmer protests and auction boycotts. He urged the Union government to facilitate higher procurement, strengthen export promotion, improve global competitiveness, and introduce support measures for the long-term sustainability of the FCV tobacco sector.