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AP Minister Intervenes in Tobacco Auctions, Seeks Minimum Price of ₹200 per Kg

Published on: 29 Jun 2026, 03:28 PM
AP Minister Intervenes in Tobacco Auctions, Seeks Minimum Price of ₹200 per Kg

Andhra Pradesh Energy Minister Gottipati Ravi Kumar visited the tobacco auction platform in Vellampalli village, Prakasam district, on Monday to review the procurement process. He held discussions with officials regarding auction operations, price trends, and procurement practices.

Addressing the media, the Minister stated that the welfare of farmers remains a top priority for the coalition government. He informed that Chief Minister N. Chandrababu Naidu has convened a meeting with representatives of tobacco purchasing companies after concerns over low prices were brought to his attention. The objective is to ensure fair remuneration for growers.

Mr. Ravi Kumar urged tobacco buyers to maintain auction prices above ₹200 per kilogram so that farmers receive remunerative returns. He noted that although 29 tobacco purchasing companies are registered, only 9 to 10 companies are currently participating in the auctions. He directed officials to ensure all registered companies participate in the bidding process and to closely monitor auction centres to prevent situations where farmers receive inadequate or no bids.

The Minister emphasised that the government would work towards making the procurement system more transparent and efficient while ensuring strict implementation of procurement norms. Pointing to price differences between Andhra Pradesh and Karnataka, he stated that procurement agencies should keep farmers' interests in mind. If necessary, the state government would engage directly with buyers to secure better prices.

Separately, Mr. Ravi Kumar inaugurated a 33/11 kV substation constructed at a cost of ₹3.80 crore in Housing Board Colony, Ongole. He said the coalition government has prioritised strengthening the state's power distribution network to meet growing electricity demand and improve supply quality. He stated that 25 substations had been sanctioned across the erstwhile Prakasam district, with several already commissioned and the remaining projects nearing completion. The construction of a 220 kV APTRANSCO substation at Yerragondapalem is progressing at an estimated cost of ₹70 crore.

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