Andhra Pradesh govt., assures support to FCV tobacco farmers amid market crisis
Agriculture Minister says purchases will begin at fixed prices and promises interest-free loans and State aid to growers
Andhra Pradesh's government has pledged support to FCV tobacco farmers facing losses during a market crisis, Agriculture Minister K. Atchannaidu announced in Guntur on Monday. The minister addressed a meeting at the Tobacco Board office, attended by key officials, legislators, buying companies, and farmers. According to Atchannaidu, purchases should commence on Tuesday at fixed prices: ₹230 per kg for bright-grade, ₹190 for medium-grade, ₹130 for off-style, and ₹110 for low-grade tobacco.
Companies breaching these rates will face severe consequences. The central government has agreed to provide every tobacco farmer, including authorized, unauthorized, and tenant growers, with an interest-free loan of ₹50,000 over two years. The state government will further offer ₹1,000 per quintal for 94 million kg of off-style and low-grade tobacco.
Excessive cultivation had caused tobacco production to reach 240 million kg, surpassing the allowed 140 million kg. To prevent similar issues next season, cultivation will be limited to 80 million kg, with controls starting from seed distribution. Chief Minister N. Chandrababu Naidu has convened six reviews and directed authorities to ensure the protection of FCV tobacco farmers.
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