VIJAYAWADA: Agriculture Minister Kinjarapu Atchannaidu said that the market conditions in Andhra Pradesh’s 2025-26 FCV tobacco auctions are showing signs of improvement, with buyer participation and competition picking up in recent weeks.
He said that under the guidance of Chief Minister N Chandrababu Naidu, the government is taking continuous measures to ensure better market conditions and remunerative prices for tobacco farmers.
In a release issued on Sunday, Atchanniadu said that as of September 4, about 86.59 million kg of FCV tobacco had been marketed over 132 auction days. Against the authorised crop size of 142 million kg, actual production was estimated at around 236 million kg. The average price recorded so far was `209.83 per kg, compared with the final average price of `248.86 per kg last year.
Atchannaidu said the substantial increase in production this season had resulted in a surplus and exerted pressure on the market. However, the situation had been improving, with buyers showing greater interest and competition at auction platforms increasing.
The Minister said the proportion of ‘no-bid’ bales had declined considerably. The current daily average was around 11-12 per cent, while some auction platforms were recording less than 1-2 per cent.
Around 10 million kg of tobacco is being marketed every week, he said, adding that increased competition among buyers was helping improve price realisation for farmers.
The Minister said the government had decided to sharply reduce the authorised FCV tobacco crop size in Andhra Pradesh for 2026-27 from 142 million kg to 81 million kg.
The decision was taken in view of the wide gap between authorised production and actual output this season, which had resulted in an excessive marketable surplus. The move aims to align production with market demand and prevent a similar surplus from developing in the future.
The Tobacco Board would undertake extensive awareness programmes to ensure farmers restrict cultivation to the authorised crop size next year, he said.
He assured farmers that the government would continue monitoring the market until the completion of the auction process and take all necessary measures to safeguard their interests.
