Tobacco farmers hit by steep losses this season
Tobacco farmers face steep losses as prices plummet
By : P.V. Prasad
Update: 2025-03-03 15:14 GMT
Kurnool: Tobacco farmers in the Nandyal district, who cultivated the crop on a large scale this year, are facing a sharp price decline and suffering steep losses. Last season, they received Rs 15,000 per quintal, but this year, prices have fallen drastically to Rs 5,000- 6,000 per quintal. Farmers say this rate is insufficient to cover cultivation costs, noting that they need at least `10,000 per quintal to break even.
Nadyala Pogaku-1, a bidi tobacco variety introduced in 2015, is a high-yielding crop with 16 to 20 curable leaves well-suited for rain-fed areas in Kurnool and Nandyal districts. It produces around 2,150 kg per hectare. In previous years, companies and traders entered into agreements and purchased directly from farmers. Encouraged by last year’s high prices, many farmers expanded cultivation, expecting good profits. However, following the harvest, prices dropped sharply and traders have not turned up to buy due to the high yields. Farmers now fear that even companies may refuse to purchase their stock due to various reasons.
"This time, the tobacco crop has covered over 20,000 acres like never before in Nandyal, Srisailam, Nandikotkur and Panyam constituencies. In these areas, an average of 14 to 15 quintals of leaves are produced per acre," said K. Mallesh from Gorukallu in Panyam. "Last season, we got a maximum of Rs 15,000 per quintal, earning Rs 1 lakh to 1.5 lakh per acre. Some farmers even leased land for Rs 20,000-25,000 per acre, but now stocks are piling up," he added.
Many farmers across Nandyal, Gadivemula, Panyam, Miduturu, Mahanandi, Jupadu Bungalow, Pamulapadu, Nandikotkur, Kothapalli and Atmakur mandals have spent up to Rs 1.50 lakh per acre on cultivation. With not many buyers turning up, they fear massive losses unless they secure at least Rs 10,000 per quintal. "As we have no other choice, we are selling at whatever price is available rather than facing complete losses. This year, we are not making much profit," said Devaiah, a farmer from Jupadu Bungalow mandal.