Govt. calls for speedier FCV tobacco procurement, better prices for farmers
Andhra Pradesh’S Agriculture Minister Kinjarapu Atchannaidu has urged the Tobacco Board to expedite the procurement of the Flue-Cured Virginia (FCV) tobacco and take steps to
Andhra Pradesh’S Agriculture Minister Kinjarapu Atchannaidu has urged the Tobacco Board to expedite the procurement of the Flue-Cured Virginia (FCV) tobacco and take steps to ensure remunerative prices for the farmers. The government will also work with the Tobacco Board to create awareness among the farmers to limit the FCV tobacco production to around 81 million kg during the 2026-27 season to help maintain stable market prices, he says. The Minister made the remarks during a teleconference held on Friday to review the progress of the FCV tobacco procurement in the State. Atchannaidu said procurement had gathered momentum over the past four days, with nearly 8.5 lakh kg of FCV tobacco being purchased every day. Farmers were currently receiving prices of up to ₹250 per kg, and the Tobacco Board was directed to coordinate with the tobacco-buying companies to secure even better prices for the growers, the Minister said.
Atchannaidu asked the Tobacco Board to engage with the procurement companies and persuade them to offer higher prices so that farmers received better returns. He also directed officials to hold discussions with the tobacco-buying companies to ensure farmers producing lower-grade tobacco were not left at a disadvantage and received remunerative prices for their crop. Ministers Gottipati Ravi Kumar and D.S.B.V Swamy, Tobacco Board Chairman Chidipothu Yashwant Kumar, Executive Director B. Vishwasri and Director of Agriculture Manazir Jeelani Samoon, among others, participated in the meeting. BJP plea to Centre Meanhile, Andhra Pradesh BJP president P.V.N. Madhav urged Union Commerce Minister Piyush Goyal to take immediate steps to address the crisis in the marketing of the FCV tobacco and safeguard the interests of nearly one lakh families in the State. In a letter to the Union Minister on Friday, Mr. Madhav said FCV tobacco farmers were facing severe financial distress during the marketing of the 2025-26 crop due to sluggish procurement, declining prices and weak market conditions.
He sought policy measures to improve market liquidity, enhance procurement, promote exports and ensure remunerative prices for growers. According to him, FCV tobacco is one of Andhra Pradesh’s major commercial crops, providing livelihoods to nearly one lakh farming families, generating rural employment and earning valuable foreign exchange through exports. The present crisis is the result of higher taxation on cigarettes, excess domestic production, increased output in competing countries, subdued global demand and reduced participation of buyers at Tobacco Board auction platforms, he said. Madhav noted that while the Tobacco Board had authorised cultivation of 142 million kg, production is estimated at around 232 million kg, creating a large surplus. As of July 13, after 88 auction days, only about 33 million kg had been sold, leaving nearly 85% of the crop unsold. The average auction price had fallen to ₹217.65 per kg, about ₹45.80 lower than the corresponding period last year, he said.
The BriefWire