Tobacco farmers must not suffer due to lack of remunerative prices: Naidu

Hans India

17-05-2025

Vijayawada: Chief Minister N Chandrababu Naidu on Friday issued firm directives that tobacco farmers in the State must not suffer losses under any circumstances.
He ordered that traders must begin immediate procurement of tobacco at remunerative prices and underlined that procurement should not stop under any pretext.
He made it clear that any injustice to farmers would not be tolerated. He warned traders that the government would not hesitate to take action if the current crisis is not resolved promptly.
In a review meeting held at his Undavalli residence on Friday with officials and traders regarding procurement and support prices for tobacco, cocoa, chili, and paddy, Naidu expressed deep dissatisfaction over the sharp fall in tobacco prices. He directed authorities to ensure farmers get remunerative prices and to avoid any actions that would bring disrepute to the government.
He said that the HD Burley variety of tobacco must be purchased by companies at Rs 12,500 per quintal based on quality. GPI and ITC must immediately begin procurement of 20 million kg. Daily procurement must be monitored through a control room and WhatsApp groups.
Officials informed Naidu that a total of 450 million kg of FCV, White Burley, and HD Burley tobacco was produced across 1,90,456 hectares in 2024–25—a record high. A shift from other crops to tobacco caused this unexpected surge, leading to oversupply issues.
Babu criticised the Tobacco Board for failing to prevent the price crash and said there was poor coordination with major traders like GPI and ITC.
He noted that while companies lured farmers with the promise of high prices, they slashed rates at harvest time—an unacceptable betrayal. He faulted companies for creating a crisis by denying MSP.
To resolve the crisis, he pointed out that only a Buyback Agreement Policy could protect farmers.
He urged farmers to enter into buyback agreements with companies from now on. Companies explained that the Tobacco Board regulates only FCV tobacco. Over 90% of White Burley tobacco has already been procured.
Reviewing cocoa procurement, he instructed Mondelez to not buy cocoa beans below Rs 500/kg. He warned against exploitation of farmers and urged coordination with other companies to ensure uniform pricing. He asked Mondelez to prepare a value-chain plan from cultivation to product development. A dedicated cocoa policy, similar to that for oil palm, is needed, he said.
He instructed the Agriculture Marketing Department to prepare a list of chili farmers who sold produce through market committees and suffered losses due to low prices.
He directed that all remaining paddy still with farmers be procured and that fine rice cultivation be promoted.