VIJAYAWADA: Chief Minister N Chandrababu Naidu has taken a firm stand to protect tobacco farmers from losses amid a sharp decline in prices.
During a high-level review meeting held at his Undavalli residence on Friday, he issued stringent directions to officials to ensure the immediate procurement of tobacco at fair prices. He emphasised that tobacco farmers should not suffer losses under any circumstances, and warned that any exploitation will attract severe consequences, underscoring his commitment to safeguarding the interests of both farmers and industries.
He expressed deep concern over the plummeting tobacco prices, which has sparked unrest among farmers. He made it clear that the government’s reputation should not be tarnished due to procurement delays or unfair practices. He set an ambitious target for companies like GPI and ITC to procure 20 million kg of HD Burley tobacco at Rs 12,500 per quintal, based on quality.
To enforce accountability, he directed the Agriculture Department to monitor daily purchases through a dedicated control room and WhatsApp group, with progress reports for every two days.
Naidu stressed that no tobacco stocks should remain unsold, whether stored at farmers’ houses or fields. A comprehensive procurement report, detailing tobacco quantities and prices, has been sought by Monday.
The Chief Minister attributed the crisis to an unprecedented yield of 450 million kg of tobacco from 1,90,456 hectares in 2024-25 season, driven by farmers shifting to tobacco cultivation due to its high productivity. This overproduction, particularly of FCV, White Burley, and HD Burley varieties, has led to a glut, exacerbating price slump, he explained.
Criticising the Tobacco Board for its failure to coordinate with traders, Naidu accused companies of misleading farmers with promises of high prices, only to drastically reduce prices post-harvest. To prevent future crises, he proposed regulating HD Burley cultivation based on global demand and price trends. Awareness campaigns, starting in June 2025, will guide farmers toward sustainable cropping patterns, he said.
Naidu also advocated for a buyback policy, urging farmers to enter formal agreements with companies, with the Tobacco Board overseeing compliance to ensure fair pricing and timely procurement.
Beyond tobacco, the Chief Minister reviewed cocoa procurement, directing Mondelez to purchase cocoa beans at no less than Rs 500 per kg. He called for a structured cocoa policy, similar to oil palm, to enhance crop value and align with international quality standards.
Naidu emphasised the government’s role in fostering a farmer-friendly environment while urging companies to cooperate in this endeavour. He instructed officials to develop plans for forward-backward integration and raise awareness about improving cocoa quality to meet global demand.
The meeting also addressed chilli and paddy procurement. Naidu sought a list of chilli farmers, who sold their produce at low prices, and ensure that only genuine farmers are included. For paddy, he directed full procurement of remaining stocks, and encouraged cultivation of fine varieties.
Official data revealed that in Rabi, 17.62 lakh tonnes of paddy has been procured from 1,41,144 farmers with Rs 3,258 crore disbursed, a significant improvement over the previous government’s figures.