Tobacco growers in the Southern Region say the 2026 auction season has yet to stabilise, with ‘no‑bid’ rejections continuing and prices remaining below expectations. Farmers at Kanigiri auction centre reported that out of 25 bales brought on Saturday, only 12 were purchased at `200–`220 per kg, while the rest were rejected.
“We are facing serious financial troubles due to transport costs and low pricing even for quality stocks. Buyers are creating fear with ‘no-bid’ rejections,” said BV Srinivasa Rao, a farmer from Kanigiri. Despite Chief Minister N Chandrababu Naidu’s recent directions and discussions by ministers and local leaders, auctions across 11 platforms in Southern Black Soils (SBS) and Southern Light Soils (SLS) regions remain unstable. Officials said Friday’s auctions saw 18.40% rejections (5,573 bales) with an average price of `195.20 per kg.
On Saturday, rejections rose to 25.38% of 7,612 bales, including 1,932 under ‘no bid’. Kanigiri recorded 55.37% rejections, Vellampalli 36.50%, Ongole-2 32.26%, Kandukuru-2 31.68% and Kaligiri (Nellore) 31.11%. In contrast, Kandukuru-1 reported only 7% rejections, DC Palli in Nellore district 9.43% and Kondapi 10.60%
