Andhra CM directs officials to ensure Tobacco farmers don't suffer losses

Andhra Pradesh Chief Minister N Chandrababu Naidu on Friday directed officials to ensure that tobacco farmers do not incur losses under any circumstances and urged traders to start procuring the crop immediately at remunerative prices.

During a review meeting at his residence in Undavalli, the CM emphasised that tobacco procurement must continue without interruption.

“Any injustice to farmers would not be tolerated…the government would not hesitate to take action if the current crisis is not resolved promptly,” an official press release quoted the CM as saying.

Expressing concern over the sharp fall in tobacco prices, Naidu instructed officials to guarantee fair prices for farmers and prevent any actions that could damage the government’s reputation.

The CM specified that companies must purchase the HD Burley variety of tobacco at Rs 12,500 per quintal, depending on quality. He urged GPI and ITC to begin procurement immediately.

He directed officials to monitor daily procurement through a control room and whatsapp groups.

From June 2025, awareness sessions should be held to discourage farmers from growing HD Burley tobacco based on international demand and price trends.

“While companies lured farmers with the promise of high prices, they slashed rates at harvest time, an unacceptable betrayal,” he said, finding fault with the companies.

To resolve a crisis like this, Naidu suggested a buyback agreement policy that can protect farmers and urged them to enter into such deals from now on with companies.

The TDP supremo said the Tobacco Board must ensure implementation and monitor purchases while prices should reflect global demand and supply, ensuring farmer profitability.

Further, the CM also reviewed cocoa procurement and instructed Mondelez company not to buy cocoa beans below Rs 500 per kg, and warned against exploitation.

He asked Mondelez to chalk out a value-chain plan from cultivation to product development, and said a dedicated cocoa policy, similar to that for oil palm, is needed.

Naidu also directed the Agriculture Marketing department to prepare a list of chili farmers who sold their produce through market committees and suffered losses due to low prices.