Farmers with their products in a tobacco auction center near Throvaguarta in Onpole, Andhra Pradesh | Photo credit: Kommuri Srinivas
After four years of a dream driven by the global demand of Indian tobacco, tobacco farmers now face a serious crisis as prices collapse. He thought there is no imminent threat to farmers who cultivate FCV tobacco (Virginia cured by leaks), those who cultivate the variety of Burley Black face a difficult challenge as production increased three times to 80 million kg compared to normal production
Seeing a good constant demand in the last four years, farmers significantly increased the acreal, since it is a more financing crop compared to rice, corn and pulses.
Feeling an imminent fall in prices worldwide, the Board of Tobacco, a tobacco crop regulator under the Ministry of Commerce of the Union, and the merchants had warned that they did not increase the acreal before the season.
Farmers are in arms in Andhra Pradesh, the largest tobacco producer. The problem promulgated a political turn with opposition parties, farmers’ associations that require the Board of Tobacco and the Government to take measures. The Prime Minister of the AP blames the Board of Tobacco for the crisis, while the Board argues that its mandate only covers Virginia’s tobacco.
Farmers, opposition parties and the government are exerting pressure on the Board of Tobacco to convince merchants to raise the actions. The Board, however, argues that its mandate is just to take care of the FCV tobacco.
A source in the industry said that the average annual market for Black Burley would be around 25-30 million kg. Merchants would form informal agreements with farmers to cultivate product stipulated amounts. But this time, seeing good prices last year, farmers increased the acreal in Black Burley, shooting the production of 80 million kg.
Through the varieties of light and Burley Negras, Andhra Pradesh produced 460 million kg or tobacco.
The Board, which stipulates the acreal for Andhra Pradesh and Karnataka, the two centers in the country for FCV tobacco, says that should not be a problem, since the FCV tobacco is worried.
“We have stipulated a culture size or 167 million kg. But it seems that the exit could exceed the 240 million kg mark. I thought the stipulated exit mark crosses, we can administer. The true challenge of the camera variety or tobacco,” he said, “he said,” he said Business line.
Farmers and opposition parties make the streets, demanding the Government and the Board to ensure that all existence with farmers is lifted.
With the problem of snow in a political crisis, Andhra Pradesh Minister and president of the Telugu Naugabu Naidu party went to the Board for the crisis. It is a hero review meeting to discuss the crisis around tobacco sales and blamed the Board for poor coordination with companies such as GPI and ITC, which led to the current crisis.
“While companies attracted farmers with the promise of high prices, they reduced the rates at the time of harvest, which is unacceptable,” he said, criticizing the compotations to create the crisis.
“After a government application, we establish a control room, with government representatives and merchants, at the headquarters of the Boards to monitor the situation. We have one leg asking merchants to help clarify the actions,” said Yashwanth.
Keshava Rao, vice president of Andhra Pradesh Rythu Sangham, said farmers are planning protests during the next two weeks demanding government intervention to resolve the crisis.
The country’s tobacco exports increased to approximately ₹ 16000 million rupees in 2023-24, record a growth of twice and a half in the last five years. The size of the crop was 145 million kg, including 100 million kg of karnataka. The Karnataka culture size was 38 million kg in 2001-02, and constantly expanded over the years. The acreeal went up to 1.62 Lakh Acres from 1.35 Lakh acres in the period.
“Although there are bone efforts to discourage tobacco farmers, they continued to attend to this commercial crop, since it sacrifices relatively safe prices compared to crops such as corn and rice,” Vivekananda Kakarla, a tobacco.
Without sanctions
For some time, the Board used to impose a penalty on farmers who crossed the area stipulated for them. The sanctions, which used to be 5 percent, including 1 percent cessation (in each additional kilogram), are difficult to implement, since it is a sensitive political issue.
Despite a constant increase in production, the processing capabilities of companies have not increased, since they could be the product throughout the year.
More like this
Posted on May 18, 2025