NELLORE: Tobacco farmers are expecting good prices for their produce this year as international market demand has remained favourable for the past three years. Record-high prices have benefited growers, and the Tobacco Board’s approval of higher production last year encouraged more farmers to take up tobacco cultivation.
The auction for tobacco began on Wednesday at the DC Palli and Kaligiri centres in the Nellore district. For the 2024-25 crop season, authorities estimate a production of 103 million kilograms across 11 auction centres in Nellore and the erstwhile Prakasam districts.
A total of 3,409 farmers have cultivated tobacco across 2,963 barns in these regions. For the 2025-26 season, the Tobacco Board has officially approved the sale of 12.05 million kilograms.
Board officials have advised farmers to follow strict grading procedures, as the quality of tobacco this year is reported to be promising, with a significant percentage classified as ‘Bright Grade.’
Other grades have also shown good quality. Investment costs for tobacco cultivation have surged, with barn lease prices rising from Rs 1 lakh last year to between Rs 2.5 lakh and Rs 3 lakh.