Interestingly, farmers are not complaining about the Board’s decision, as they understand what prompted this unprecedented move.
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With the Tobacco Board drastically reducing the crop size for the upcoming season, farmers in Andhra Pradesh are scrambling for alternatives. They are also demanding that the State government and the Board take action against unlicensed growers who continue to disrupt the market. They are worried that reduced crop size could lead to losses, as the cost of production and maintaining the barns doesn’t change, making it unremunerative. With no clear alternatives, they are left wondering how to manage the upcoming season.Interestingly, farmers are not complaining about the Board’s decision, as they understand what prompted this unprecedented move. A huge market glut, compounded by a sharp rise in competition from Brazil and African countries, has significantly dampened domestic demand. To worsen the situation, actual production had far exceeded the crop size limits set by the Board.Glut forces cutWith the situation going out of control, the Board recently decided to cut the crop size to 81 million kg for Andhra Pradesh against 142 million kg (mkg), a pruning of 43 per cent for the 2026-27 season. Similarly, the crop size for Karnataka has been reduced to 51 mkg for 2026-27 against 100 mkg last year, a 44 per cent cut.The Board, which works under the Union Commerce Ministry, is mandated to regulate production and curing of FCV (flue-cured tobacco) to ensure remunerative prices to growers. It evaluates the market conditions globally and takes a call on the crop size every year. Excessive production from the licenced growers attracts penalties during the auctions.“We understand the rationale. We are aware that there is a glut. We want the Government to come out with a strategy to help farmers identify alternative crops,” PS Murali Babu, the President and former General Secretary of the Federation of All India Farmer Associations (FAIFA), told businessline.Vivekananda, a tobacco farmer from the Eluru district of Andhra Pradesh, asked the government and the board to keep tabs on the unlicensed farmers. “They bring about 2 million kg of tobacco to the market at about ₹230 a kg, distorting the market. We want it to be curbed and confiscation of the produce in order to discourage illegal farming,” he said.“They should sell the confiscated produce and remit a good part of the proceeds to the Tobacco Growers’ Welfare Fund,” he suggested.Financial burdenFarmers note that the reduced crop size effectively cuts their allowed output to 2,000 kg per barn (about 4 acres) for the 2026-27 season as against 3,600 kg per barn. There, however, won’t be any change in the cost of production.Meanwhile, Chief Minister N Chandrababu Naidu asked officials to prepare a short-, medium- and long-term strategy to address the challenges being faced by tobacco farmers. He asked them to consider whether there are any possibilities to store the produce so that farmers can wait for an opportune time to sell it.Published on July 27, 2026
