AP Chief Minister N Chandrababu Naidu
With tobacco farmers saddled with unsold inventory, Andhra Pradesh Chief Minister N Chandrababu Naidu has directed companies to resume purchases immediately to bail out the farmers.Asserting that prices must not fall below the State government’s Minimum Support Price (MSP) of ₹200 per kg, he cautioned that inadequate support could drive farmers toward alternative crops, impacting long-term tobacco production.Dissatisfaction with Tobacco Board and procurement gapThe Chief Minister expressed dissatisfaction with the Tobacco Board’s functioning, noting that while Karnataka’s FCV (flue-cured Virginia) tobacco market remained stable, Andhra Pradesh faced a significant procurement gap.Companies warned over unfulfilled commitmentsReviewing the commitments of 28 companies, he warned that those failing to honour their indents would face consequences, specifically criticising the slow pace of major manufacturers such as ITC Ltd, Godfrey Phillips India Ltd, and VST Industries, a Chief Minister’s Office statement said.The scale of the crisis is underscored by a sharp mismatch between commitment and supply: while companies had submitted indents for 95.50 million kg of tobacco, farmers actually produced 142 million kg. Declining exports and absence of open market compound woesIn response, trade representatives explained that the crisis stems from cultivation exceeding market demand alongside declining exports. Despite these challenges, the companies assured the Chief Minister that procurement would continue to address the mounting oversupply.They said purchases had already exceeded their actual requirements and that declining exports had further affected procurement.Officials informed the Chief Minister that the absence of an open market for tobacco had aggravated the problem.Published on July 9, 2026
