YS Jagan Seeks MARKFED Intervention as AP Tobacco Farmers Face Distress

YSR Congress Party (YSRCP) president and former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Wednesday accused the coalition government of failing to safeguard tobacco farmers, alleging that delayed procurement, falling auction prices and rising crop rejections have pushed growers into a severe financial crisis. Calling for immediate intervention, he urged the government to deploy MARKFED to ensure competitive bidding and protect farmers from distress sales.

Addressing a meeting with prominent tobacco farmers from Nellore, Prakasam, Eluru and East Godavari districts at the party headquarters in Tadepalli, Jagan said YSRCP would continue to fight for farmers' interests. He also announced that he would visit the undivided West Godavari district within the next 10 days to meet affected growers and assess the situation firsthand.

Jagan claimed that despite 94 days having elapsed since the start of the auction season, only 38 million kg of the estimated 232 million kg tobacco crop—around 16.5% —had been procured. He warned that procurement, which is usually completed within about 100 days, was moving at an unusually slow pace, leaving farmers burdened with unsold produce. He further cautioned that once Karnataka's FCV tobacco auctions gather momentum, traders may shift their focus, further impacting demand for Andhra Pradesh's crop.

The former Chief Minister alleged that auction prices at centres including Podili, Tangutur, Kanigiri, Kandukur, Jangareddygudem and Gopalapuram fell to ₹170–₹186 per kg despite government assurances that prices would not slip below ₹200 per kg. He accused traders of operating as a syndicate to suppress prices, leaving farmers with little bargaining power.

Demanding corrective measures, Jagan called for the immediate entry of MARKFED into tobacco procurement, arguing that government participation would break the alleged cartel and create healthy competition among buyers. Recalling the previous YSRCP government's intervention, he said MARKFED's participation had helped raise the average auction price to ₹289 per kg during the 2023-24 season, with the highest price touching ₹411 per kg.

He also urged the government to take action against companies rejecting tobacco consignments and to ensure licensed buyers purchase the quantities they had committed to procure at fair prices.

The current auction season has been challenging for Flue-Cured Virginia (FCV) tobacco growers due to a combination of sluggish exports, weak international demand, rising cultivation costs and slower procurement, factors that have weighed heavily on auction prices. Farmers have also complained of higher rejection rates at auction platforms, adding to their financial burden.

Speaking at the meeting, YSRCP Farmers' Wing General Secretary MVS Nagi Reddy claimed that 27% to 40% of tobacco brought to auction platforms was being rejected and urged the government to step in through MARKFED. Tobacco Board member Mareddy Subba Reddy said cultivation costs had risen to nearly ₹2.30 lakh per acre, while delayed procurement was forcing farmers to take unsold produce back from auction yards. He warned that if purchases did not accelerate, the auction season could extend until February, prolonging uncertainty for thousands of tobacco growers.