Chandrababu Naidu Mandates Minimum Rs.200/kg Floor Price for Tobacco Farmers
Andhra Pradesh Chief Minister Chandrababu Naidu has mandated a floor price of Rs.200 per kilogram for tobacco to protect farmers. The government is strictly enforcing fair procurement and planning long-term strategies, including promoting alternative crops to ensure sustainable farmer incomes.
Highlights
- •Chief Minister Chandrababu Naidu has set a minimum tobacco purchase price of Rs.200 per kilogram.
- •All tobacco auction platforms are mandated to be fully operational, with a strict ban on rejecting farmer consignments.
- •The government plans to engage with central authorities to seek long-term stabilization solutions for the tobacco market.
- •Future policies will focus on promoting alternative crops to reduce farmers' heavy reliance on tobacco cultivation.
Concerns over the volatility of tobacco prices have prompted decisive action from the state leadership. Andhra Pradesh Chief Minister Chandrababu Naidu recently convened a critical meeting at the secretariat to address the ongoing challenges faced by growers and traders, emphasizing that ensuring fair compensation for farmers is a primary government objective.
During the session, the Chief Minister established a firm price floor, declaring that no variety of the crop should be purchased below Rs.200 per kilogram. By setting this minimum benchmark, the administration aims to stabilize the market and prevent financial distress among the farming community. Chandrababu Naidu urged purchasing companies and traders to conduct their business with a humane approach, prioritizing cooperation and fairness throughout the procurement cycle.
Ensuring Fair Market Procurement
To bolster the stability of tobacco prices, the government has mandated that all auction platforms must remain fully operational. The Chief Minister made it explicitly clear that every consignment brought to the market by farmers must be accepted, strictly prohibiting the rejection or return of any harvest. Furthermore, all participating companies are required to remain actively involved in the purchase process until completion, with no authorization for withdrawal.
The state government is adopting a zero-tolerance policy toward market irregularities. Chandrababu Naidu warned that any transactions conducted outside the official purview of the Tobacco Board would face stringent consequences, including potential arrests. This directive is designed to eliminate exploitative practices such as the use of “no bid” or “low bid” tactics at auction centers, which have historically undermined farmer earnings.
Long-term Strategy and Future Planning
Looking beyond immediate relief, the state is actively engaging with the central government to formulate long-term solutions for the sector. A delegation consisting of farmers' representatives and Tobacco Board officials, led by the Chief Minister, is scheduled to visit New Delhi to discuss these concerns with central ministers. Agriculture Minister Kinjarapu Atchannaidu has been tasked with coordinating these efforts to ensure a comprehensive national strategy.
For the upcoming agricultural cycles, the administration plans to implement policies more closely aligned with fluctuating market conditions. A key component of this future-oriented approach includes promoting the cultivation of alternative crops. By reducing regional dependence on tobacco cultivation, the state intends to ensure more sustainable and predictable income streams for farmers across the region. The review meeting concluded with the participation of several cabinet ministers, including Anam Ramanarayana Reddy and Gottipati Ravi Kumar, alongside senior administrative officers.
