Andhra Pradesh Chief Minister N. Chandrababu Naidu is putting pressure on tobacco companies to speed up procurement and smooth out auction process. He wants trust restored among farmers. At Secretariat meeting,he vented frustration over slow tobacco buying,warning of strict penalties for firms not meeting commitments.
Naidu put 28 tobacco firms under the microscope,pointing out that big names like ITC Limited,Godfrey Phillips India Ltd.,and VST Industries Ltd . had promised to buy 95.50 million kilograms of tobacco but only picked up 17.6 million kilograms so far. Unacceptable. This is the fifth time this season they're revisiting the issue — a pattern of negligence,he said.
He demanded companies stick to the state-mandated minimum support price of ₹200 per kilogram. And warned: neglecting farmers could push them to switch crops if things don't improve.
Tobacco industry reps blamed crisis on farmers growing more tobacco than their indent allocations suggested. They had already bought more than needed but said falling exports were straining them. Still, they assured Naidu they'd keep buying.
Officials mentioned the lack of open tobacco market worsened things. While companies had indented 142 million kilograms, farmers produced a whopping 232 million kilograms this season. A big mismatch. Prices plunged,procurement slowed.
Naidu's irritation with the Tobacco Board was clear. Why is Andhra Pradesh struggling while Karnataka isn't? He stressed keeping goodwill with farmers,warning companies of reputation damage if they don't keep promises.
Present at the meeting were ministers like K. Atchannaidu, Anam Ramanarayana Reddy,Gottipati Ravi Kumar,and Dola Bala Veeranjaneya Swamy,plus public reps from the old Prakasam district and senior officials. Talks highlighted urgent need for tobacco firms to align procurement with market demand and production .
