Tobacco Farmers Face Double Blow of Falling Prices and Delayed Procurement

Growing anxiety among tobacco farmers over declining prices and slow procurement has prompted the Tobacco Board to step in with assurances that farmers' interests will be protected. The Board has pledged to take all necessary measures to stabilize the market and address concerns raised by growers facing mounting financial pressure during the ongoing marketing season.

The assurance came after an emergency review meeting convened by Tobacco Board Chairman K. Ravi with trade representatives in Guntur on Monday. The meeting was called in response to increasing complaints from farmers regarding delayed purchases, weakening demand and rising storage costs as large quantities of tobacco remain unsold at auction platforms.

Officials revealed that auction centers have received nearly 232 million kilograms of Flue-Cured Virginia (FCV) tobacco so far this season. However, only about 142 million kilograms have been sold, leaving a substantial volume awaiting buyers. The slowdown has triggered concerns among growers, many of whom depend on timely sales to recover cultivation costs and prepare for the next crop cycle.

FCV tobacco is one of India's most significant agricultural export commodities, with Andhra Pradesh accounting for the majority of the country's production . The sector supports thousands of farming families and generates valuable foreign exchange earnings through exports to international markets. As a result, fluctuations in global demand often have a direct impact on local farmers' incomes.

During the meeting, farmer representatives urged traders to purchase the entire quantity brought to auction platforms without unnecessary delays. They demanded that buyers honor their previously announced procurement commitments and ensure remunerative prices for growers. Farmers also called for stringent action against unauthorized buyers and middlemen , alleging that illegal trading activities undermine the regulated auction system and adversely affect genuine producers.

Trade representatives, however, attributed the current slowdown to broader global challenges. They pointed to weak international demand , excess tobacco production in several countries and continuing market volatility as key factors affecting procurement. Traders also noted that higher taxes and operational costs have added to the pressure on the industry.

Despite the current uncertainty, traders expressed cautious optimism, stating that fresh export orders are expected within the next two weeks. If these orders materialize, procurement activity could pick up significantly, helping improve prices and reduce the backlog of unsold stocks.

Reiterating its commitment to market stability, the Tobacco Board emphasized the need for scientific crop estimation to better align production with market demand. Officials said accurate assessments would help prevent future supply-demand imbalances and support more sustainable price realization for farmers.

The Board also announced that surveillance would be intensified to curb violations of cultivation and marketing regulations. It warned that strict action would be taken against those involved in purchasing tobacco grown outside approved norms, as well as against unauthorized traders and brokers operating in the market.

With millions of kilograms of tobacco still awaiting buyers and farmers closely monitoring price movements, the coming weeks are expected to be crucial for Andhra Pradesh's tobacco sector. Much will depend on export demand and the industry's ability to restore confidence in the market during the remainder of the auction season.