YSR Congress Party general secretary M. V. S. Nagi Reddy expresses concern over the increasing rejection of tobacco bales at auction platforms in Ongole, Kandukur and West Godavari districts
| Photo Credit: File photo
The YSR Congress Party general secretary and former Andhra Pradesh State Agriculture Mission vice-chairman M. V. S. Nagi Reddy has alleged that tobacco farmers in Andhra Pradesh were reeling under a severe financial crisis owing to falling auction prices and rising cultivation costs.In a statement issued on Tuesday, Mr. Nagi Reddy claimed that tobacco farmers had suffered losses of nearly ₹3,100 crore during the last two rabi seasons compared to the 2023-24 season when the YSRCP government was in power under former Chief Minister Y. S. Jagan Mohan Reddy.He said the average tobacco price, which stood at ₹288.65 per kg in 2023-24 with production of 215.35 million kg, fell to ₹248.86 per kg in 2024-25 despite production increasing to 240.64 million kg. According to him, farmers incurred losses of nearly ₹1,199 crore during the first rabi season under the present government because of lower prices and higher cultivation expenses.For the ongoing 2025-26 season, Mr. Nagi Reddy said production was estimated at more than 260 million kg, while the average auction price up to May 25 had declined further to ₹237.21 per kg. In the southern black soil regions of Ongole, prices reportedly fell to nearly ₹212 per kg.Alleging that farmers suffered an additional loss of ₹1,901 crore this season due to declining prices and rising input costs, he also expressed concern over the increasing rejection of tobacco bales at auction platforms in Ongole, Kandukur and West Godavari districts.Mr. Nagi Reddy criticised the State government for failing to intervene despite the deepening crisis and urged it to take steps to ensure remunerative prices for agricultural produce. Continued distress in the farm sector, he warned, would adversely affect the rural economy as well as the State’s revenues. Published - May 26, 2026 06:30 pm IST
