Andhra Pradesh tobacco crisis: Only 10% of 232 mn kg procured, says Jagan
Synopsis
Ninety-four days into the auction season, Andhra Pradesh's tobacco farmers have seen only 38 million kg of a 232-million-kg crop procured — with prices crashing to ₹130 against a government-stated floor of ₹200. YSRCP's Jagan is now mobilising field protests, and the clock is ticking: unsold July stocks risk physical damage and a trader exodus to Karnataka.
Key Takeaways
Only 38 million kg of 232 million kg of tobacco output has been procured in Andhra Pradesh , even 94 days after auctions began.
Prices have fallen to as low as ₹130 per kg , well below the ₹200 per kg floor cited by Chief Minister Chandrababu Naidu .
YS Jagan Mohan Reddy alleged no trader licence has been cancelled and no case registered despite syndicate activity.
Jagan announced tours to West Godavari , Gopalapuram , Jangareddygudem , and Kandakuru to press the government.
The YSRCP government had maintained a Market Intervention Fund of ₹3,000 crore and spent ₹7,800 crore on crop procurement during its term.
Farmers warn unsold stocks may be damaged and traders could shift to Karnataka if the crisis persists.
Former Andhra Pradesh Chief Minister and YSR Congress Party (YSRCP) president YS Jagan Mohan Reddy on Wednesday, 22 July alleged that the state's coalition government has failed to procure even 10 per cent of the total tobacco output, leaving farmers at the mercy of middlemen and syndicates. Addressing tobacco farmers who met him to voice their grievances, Jagan announced plans to tour West Godavari and other affected districts shortly.
The Scale of the Procurement Failure
Of a total tobacco yield of 232 million kg, only 38 million kg has been purchased even 94 days after auctions commenced, according to Jagan. Prices have reportedly crashed to as low as ₹130 per kg — well below the floor of ₹200 per kg that Chief Minister N Chandrababu Naidu had stated should not be breached. Jagan attributed the price collapse to syndicate operations, middlemen, and the government's failure to step in with adequate procurement.
No Action Against Traders, Farmers Pushed to Distress Sales
The YSRCP chief alleged that not a single case has been registered against any trader, nor has a single trading licence been cancelled, even as farmers are being forced into distress sales. He warned that if the government does not respond, protests will escalate — beginning with tours to Gopalapuram and Jangareddygudem, and extending to Kandakuru if demands remain unmet.
Farmers who met Jagan expressed alarm that stocks remain unsold as July draws to a close — a situation they say could damage the produce and prompt traders to shift procurement operations to Karnataka, leaving Andhra Pradesh growers stranded.
What the YSRCP Government Did — and What Jagan Is Demanding Now
Jagan pointed to mechanisms introduced during his tenure as benchmarks the current government should revive. He cited a Market Intervention Fund of ₹3,000 crore created under the YSRCP government to buffer price volatility, and said his administration spent ₹7,800 crore on crop procurement during its term. He also highlighted the role of Rythu Bharosa Kendras (RBKs) and the CMAPP (Continuous Monitoring of Agriculture Prices and Procurement) application in tracking and stabilising farm prices in real time.
Jagan urged the current government to deploy Markfed — the state marketing federation — to create competitive buying pressure and restore farmer confidence. He asserted that YSRCP would continue its agitation until the government yields to farmers' demands.
What Happens Next
Jagan has confirmed an imminent tour of West Godavari and surrounding tobacco-growing regions. With the auction season already 94 days old and bulk stocks still unsold, farmers and opposition leaders alike warn that a prolonged stalemate risks permanent damage to this season's crop — and to grower livelihoods across one of Andhra Pradesh's most tobacco-dependent districts.
Point of View
94 days in, with prices nearly halved from the government's own stated floor. But the deeper story is institutional: the absence of Markfed intervention, zero trader accountability, and the lapse of real-time price monitoring tools like CMAPP suggest a deliberate or negligent withdrawal of state market support. Jagan's protests are opposition politics, but the underlying procurement data is a policy failure the coalition government cannot easily explain away. The risk now is contagion — if traders migrate to Karnataka, Andhra Pradesh's tobacco belt could face a structural loss of market access that one season of protests will not reverse.
NationPress
23 Jul 2026
Frequently Asked Questions
Why are Andhra Pradesh tobacco farmers in crisis?
Andhra Pradesh tobacco farmers are in crisis because only 38 million kg of a 232-million-kg crop has been procured 94 days into the auction season, and prices have crashed to ₹130 per kg — far below the ₹200 floor stated by Chief Minister Chandrababu Naidu. Middlemen and syndicates have reportedly filled the vacuum left by inadequate government procurement.
What did Jagan Mohan Reddy demand from the Andhra Pradesh government?
Jagan demanded that the government deploy Markfed to create competitive buying pressure, register cases against traders exploiting farmers, and cancel licences of errant traders. He also called for the revival of the Market Intervention Fund and real-time price monitoring tools used during the YSRCP government's tenure.
What mechanisms did the YSRCP government use for tobacco procurement?
The YSRCP government maintained a Market Intervention Fund of ₹3,000 crore to buffer price volatility and spent ₹7,800 crore on crop procurement during its term. It also deployed Rythu Bharosa Kendras (RBKs) and the CMAPP application to monitor and stabilise farm prices in real time.
What is the risk if the tobacco procurement crisis is not resolved quickly?
Farmers warn that unsold stocks could be physically damaged as July ends, and that traders may shift procurement operations to Karnataka, leaving Andhra Pradesh growers without buyers. A prolonged stalemate could cause lasting damage to grower livelihoods in tobacco-dependent districts like West Godavari.
What protests has Jagan announced over the tobacco crisis?
Jagan announced an imminent tour of West Godavari and other tobacco-growing areas, with planned visits to Gopalapuram, Jangareddygudem, and Kandakuru if the government does not respond to farmers' demands. He stated that YSRCP protests will continue until justice is delivered to farmers.
