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Tobacco farmers in Andhra Pradesh face financial distress amid declining auction prices

M.V.S. Nagi Reddy, general secretary of YSR Congress Party, announced that auction prices for tobacco in Andhra Pradesh have dipped below ₹200 per kilogram, despite promises from government. This decline has sparked protests among farmers in Ongole, as many face challenges with unsold crops and increasing cultivation expenses.

BRIC Team
BRIC Team
Jun 19, 2026 · 1 min read
Tobacco farmers in Andhra Pradesh face financial distress amid declining auction prices

Key Takeaways

  • Auction prices for tobacco in Andhra Pradesh have fallen below ₹200 per kilogram despite government assurances.
  • Protests have erupted among farmers at auction centers in Ongole due to unsold and rejected bales.
  • Nagi Reddy reported increasing rejection rates at auctions, leading to higher transportation costs for farmers.
  • The Southern Black Soil regions have faced significant losses over the last two rabi seasons, worsening farmers' financial distress.
  • Chief Minister N. Chandrababu Naidu recently met with Tobacco Board officials to address the crisis affecting thousands of tobacco-growing families.

Tobacco Growers in Andhra Pradesh Grapple with Financial Struggles

Tobacco growers in Andhra Pradesh are facing tougher financial times as auction prices keep falling . A political figure has raised alarm over these ongoing farmer struggles.

At a recent media conference,the leader mentioned that state's chief executive had meetings with tobacco regulators and buyers . They reportedly ordered no auctions without bids and prices to stay above ₹200/kg . But prices fell even more next day,leaving more tobacco bales unsold, rejected . Farmers then took to streets,voicing anger at Ongole auction sites.

The situation is dire in Southern Black Soil regions. Many farmers have seen big losses last two rabi seasons . Rising costs for labor,fertilizers, other farming essentials worsen it. The political figure noted more tobacco getting rejected at auctions,adding to financial strain as farmers face extra transport costs for these rejects . Much of this year's crop still unsold because of slow buying.

There's a call for swift action to stabilize prices. Farmers' livelihoods depend on it…

#Andhra Pradesh

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