Prakasam Collector Issues Final Warning to Tobacco Firms Over Procurement Failures

Prakasam district authorities have issued a stern warning to tobacco companies regarding the current tobacco procurement process. District Collector P. Rajababu recently cautioned that firms failing to bid on tobacco lots at local auction platforms will face strict punitive measures, including potential blacklisting. This directive comes as part of ongoing efforts to safeguard the interests of local farmers and ensure stability in the regional agricultural market.

Enforcing Fair Tobacco Procurement Practices

During an official inspection of the Ongole-I and Ongole-II tobacco auction centers, P. Rajababu was accompanied by Tobacco Board executive director B. Vishwashree. The Collector expressed significant dissatisfaction with the current practices of procurement agencies, noting that they have not adjusted their approach despite recent high-level directives from Chief Minister N. Chandrababu Naidu. Officials emphasized that the practice of skipping bids or applying arbitrary price cuts to bales will no longer be tolerated under any circumstances.

The current market situation has been complicated by production levels. While the Tobacco Board initially granted permission for the cultivation of 140 million kilograms, the actual output for this season reached nearly 230 million kilograms. Despite this surplus, authorities maintain that tobacco companies cannot use excess production as a justification to avoid purchasing from farmers. They are expected to share the responsibility of maintaining market health and supporting those who cultivate the crops.

Accountability Measures and Market Oversight

To ensure strict compliance with tobacco procurement guidelines, the administration has introduced new monitoring protocols. Beginning next week, an officer from the agriculture department, specifically at the rank of assistant director, will be stationed at auction centers to oversee operations and guarantee fair transactions. Furthermore, a clear warning has been issued by the Tobacco Board: companies that continue to bypass auctions will face the immediate cancellation of their registration. To incentivize fair participation, only those entities actively procuring stock this season will be eligible to take part in next year's auction cycles.

Government officials have also provided reassurance to the farming community regarding pricing concerns. Adhering to the recent mandates from the state government, the administration is committed to preventing the average price of tobacco from dipping below Rs 200 per kilogram. By implementing these rigorous oversight mechanisms, the Prakasam district administration aims to stabilize the market and ensure that tobacco growers are not unfairly impacted by the refusal of private firms to purchase available lots. The situation remains under close surveillance as local authorities continue to push for transparency and fair-trade practices at all designated auction sites.

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