10-05-2025
- Business
- New Indian Express
Stagnant prices hit tobacco farmers of Prakasam and Nellore districts
NELLORE: Tobacco farmers in Prakasam and Nellore districts are expressing deep disappointment as prices have failed to meet their expectations this season, despite escalating input costs.
After three years of stable pricing, hopes for improved returns this year have been dashed.
Two months since the auction season began, prices remain stagnant, leaving growers increasingly disheartened.
For the 2024–25 season, the Tobacco Board permitted auctioning of 105 million kilograms in the Southern Light Soils (SLS) and Southern Black Soils (SBS) regions across Prakasam and Nellore, with 11 auction centres in operation.
In Nellore's SLS region—including Kandukur-1, Kandukur-2, DC Palli, and Kaligiri centres—40 million kilograms were approved for sale.
However, due to strong interest from cultivators, estimated production has surged to around 50 million kilograms.
'The cost of tobacco cultivation has increased. We hoped prices would rise accordingly, but the reality has let farmers down. In previous years, when prices dropped, the government intervened through MARKFED (State Cooperative Marketing Federation) to purchase stock and support us. A similar intervention is urgently needed now,' Ch Narayanaswamy, a farmer from Marripadu mandal told TNIE.
Auctions commenced on March 10 and 19. Last year, the highest price per kg reached Rs 365, with an average of Rs 265.
This year, prices opened at Rs 280 per kg and have since remained static. Farmers argue that high-grade tobacco, which should fetch Rs 28,000 per quintal, is now struggling to even reach Rs 20,000 for lower-grade produce.
