Andhra Pradesh steps in to shield FCV tobacco farmers from losses amid market glut

The Andhra Pradesh government has assured Flue-Cured Virginia (FCV) tobacco growers that it will take necessary measures to protect them from losses in the face of an ongoing market crisis. Agriculture Minister K. Atchannaidu made the statement on Monday during a meeting at the Tobacco Board office in Guntur, attended by Ministers Dola Sree Bala Veeranjaneya Swamy and Gottipati Ravi Kumar, legislators, Tobacco Board officials, buying companies, and farmers.

Addressing the gathering, Mr. Atchannaidu said that purchases would commence from Tuesday at the fixed prices. He warned that buying companies have been directed to pay at least ₹230 per kilogram for bright-grade tobacco, ₹190 for medium grade, ₹130 for off-style, and ₹110 for low-grade tobacco. Any firm found violating these prescribed rates would face stringent action, he added.

In a move to provide immediate financial relief, the Centre has agreed to extend an interest-free loan of ₹50,000 for two years to every tobacco farmer, including authorised, unauthorised, and tenant growers. Additionally, the State government will provide ₹1,000 per quintal for 94 million kg of off-style and low-grade tobacco, aimed at cushioning the impact of lower-quality produce.

The minister attributed the current crisis to excessive cultivation, which pushed tobacco production this season to 240 million kg against the permitted 140 million kg. To prevent a recurrence, he announced that cultivation in the next season would be capped at 80 million kg, with strict controls starting from the distribution of seeds. This measure, he said, is designed to align production with demand and stabilise prices.

Mr. Atchannaidu also revealed that Chief Minister N. Chandrababu Naidu held six reviews of the situation and directed authorities to ensure that FCV tobacco farmers are adequately protected. The meeting underscored the government's commitment to addressing the concerns of growers, who form a significant agricultural community in the region.

FCV tobacco is a key commercial crop in Andhra Pradesh, supporting the livelihoods of thousands of farmers and workers. The price crisis, driven by oversupply, has raised fears of substantial income losses. The government's intervention, including price fixing and financial support, is seen as a critical measure to stabilise the market and safeguard farmer interests.

While the support package has been welcomed by many, farmers have expressed the need for timely implementation and monitoring to ensure that the benefits reach them without delay. The government, for its part, has emphasised that stringent action will be taken against any company or individual attempting to undercut the fixed prices or delay purchases.

As the buying season begins, all eyes will be on how effectively the measures are enforced and whether the production cap for the next season will help restore balance to the tobacco market.