Business

Andhra Pradesh Government Commits to Fair Prices for Tobacco Farmers

In Andhra Pradesh, Energy Minister Gottipati Ravi Kumar announced measures aimed at securing better prices for tobacco farmers during a review meeting with Chief Minister N. Chandrababu Naidu. The government will implement a transparent auction process through the Tobacco Board to prevent unauthorized transactions. Farmers faced financial strain due to rejected tobacco at procurement centers, leading to distress sales. To alleviate this, the Chief Minister suggested a minimum price of ₹200 per kg for tobacco purchases, ensuring farmers receive appropriate compensation for their crops.

MBN Business Reporter

MBN Business Reporter

Jun 19, 2026

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Andhra Pradesh Government Commits to Fair Prices for Tobacco Farmers

Key Takeaways

  • Government mandates transparent auction for tobacco
  • Minimum price of ₹200 per kg for farmers
  • Focus on preventing distress sales among growers

Finally some good news coming for tobacco farmers in Andhra Pradesh . Looks like the government is actually stepping in to make sure they get fair price for their hard work.

Energy Minister Gottipati Ravi Kumar recently met with Chief Minister N. Chandrababu Naidu and discussed this whole issue . He said it is important to protect farmers from problems they are facing in current market.

And tbh,the biggest problem has been these distress sales . What happens is,farmers go to procurement centers and their crops get rejected for some reason . Then they are forced to sell their produce at very low prices,much less than what they expected. This is huge financial hit ah.

So now,the government is trying to stop this.

The Chief Minister has given direct orders that companies must buy tobacco at minimum price of ₹200 per kg . This is big step to reduce money pressure on farmers and make sure they are not cheated .

Few things standing out clearly from this announcement:

  • All buying and selling must happen transparently through official Tobacco Board auction platforms.
  • A minimum price of ₹200 per kg is now set to stop these distress sales .
  • Companies can't use increased production as excuse to pay lower prices.

Apparently,because of good prices last season,many farmers expanded their tobacco cultivation this year . But Minister Ravi Kumar has warned companies not to use this or other excuses like higher taxes on cigarettes to reject tobacco or buy less.

And honestly,this is where real test will be.

Government is saying all right things,but these big companies always find some loophole or reason to push prices down . The commitment is there on paper,but implementation is everything.

This whole initiative is not just for farmers only,it's for state's agricultural economy also . Tobacco cultivation is a big part of the region's income.

But you have to wonder if this minimum price will be enough,and if it will be strictly followed . It's a constant battle for farmers… let's see if this time things will be different on the ground .

Source: thehindu-top
#Gottipati Ravi Kumar#N. Chandrababu Naidu#Tobacco Board#Andhra Pradesh#tobacco farmers#procurement process#agricultural economy#minimum price#distress sales#crop rejection

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