CM warns traders over declining tobacco prices
Vijayawada: Taking a serious note of the lacklustre procurement of tobacco by traders, chief minister N Chandrababu Naidu directed officials to ensure that traders procure the entire tobacco stocks from
farmers
without any price reduction, while warning of stringent action against traders if farmers incur losses.
The CM, who held a review meeting with officials over issues in the procurement of tobacco, chilli, and cocoa on Friday, expressed dissatisfaction over the decline in
tobacco prices
. Making it clear that HD Burley tobacco must be bought at a minimum price of 12,500 per quintal, he said traders like ITC and GPI should take immediate steps to procure 20 million kg of tobacco. He further directed officials to monitor daily purchases through a control room and submit a report every two days.
Agriculture dept officials informed Naidu that there was an unexpected increase in tobacco yield this year, which, coupled with poor demand in the international market, caused the crisis. Tobacco varieties like FCV, White Burley, and HD Burley were cultivated in 1.9 lakh hectares during 2024-25, yielding 450 million kilograms. They said this is the highest crop yield, and the shift of farmers from other crops to tobacco also contributed to the increase in overall yield.
CM bats for
buyback policy
Noting that buyback policy is the best way to overcome the current problem, Naidu suggested that farmers should enter into buyback agreements with companies from now on.
"The tobacco board should monitor the implementation of the buyback policy and ensure purchases take place as agreed. Prices should be set according to global demand and supply to ensure profits for farmers," he said, adding that traders woo farmers to cultivate tobacco when the demand is high, but shy away when production increases, putting the farmers at a loss. "This cannot be allowed from now on, and traders must commit to a buyback agreement," he warned.
On reduction of
cocoa prices
, Naidu said Mondelez should purchase cocoa beans at 500 per kg. "No company should exploit farmers in cocoa bean purchases. Start coordinating with other companies to ensure purchases at 500 per kg," he said.
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