Collector Warns Tobacco Firms Over No Bid

Nellore: Prakasam district collector P. Rajababu on Saturday warned tobacco companies of strict action, including blacklisting, if they deliberately reject tobacco lots with No Bid at auction platforms.

Inspecting the Ongole-I and Ongole-II tobacco auction centres along with Tobacco Board executive director B. Vishwashree, the collector expressed displeasure that companies had not changed their approach despite a recent review meeting chaired by Chief Minister N. Chandrababu Naidu.

He said every tobacco bale brought to the auction should be purchased and warned that arbitrary price cuts and the No Bid practice would not be tolerated.

Rajababu said the Tobacco Board had permitted cultivation of 140 million kg, but farmers had produced nearly 230 million kg this season. He said companies could not cite excess production as a reason to avoid procurement and must share responsibility in protecting farmers' interests.

He announced that only companies actively procuring tobacco this season would be allowed to participate in next year's auctions. From Monday, an agriculture department officer of assistant director rank will monitor auction centres to ensure fair procurement.

The collector also assured farmers that the government would implement the Chief Minister's directive to prevent the average tobacco price from falling below Rs200 per kg.

The Tobacco Board warned that registered companies which continue to skip auctions would face cancellation of their registration from next week.