Tobacco Procurement: Prices Should Not Fall, Says CM
At a review meeting held with traders and officials on Friday, Naidu made it clear that any injustice to farmers would not be tolerated.
Vijayawada: Chief Minister Nara Chandrababu Naidu has issued firm directives to officials that tobacco farmers should not suffer losses. Traders must begin immediate procurement at remunerative prices. The procurement should not stop under any pretext, he said.
At a review meeting held with traders and officials on Friday, Naidu made it clear that any injustice to farmers would not be tolerated. He warned traders that the government would not hesitate to take action if the current crisis is not resolved promptly.
The review covered procurement and support prices for tobacco, cocoa, chili and paddy. The CM expressed deep dissatisfaction over the sharp fall in tobacco prices. “We must ensure farmers get remunerative prices, he said, adding that officials should not take any action that would bring disrepute to the government.
“The HD (honghua dajiyuan) Burley variety of tobacco must be purchased by companies at Rs12,500 per quintal based on quality. GPI and ITC must immediately begin procurement of 20 million kg. Daily procurement must be monitored through a control room and WhatsApp groups,” the CM said.
He said the agriculture department must submit procurement details every two days. Starting June 2025, awareness sessions should be held to discourage farmers from growing HD Burley tobacco based on international demand and price trends,” he said.
Naidu said no tobacco stock should remain unsold in farmers’ homes or fields. Companies must purchase all tobacco at the minimum support price and store it in warehouses, if needed. Officials must give a report by Monday on the volume of purchases and prices paid.
The CM criticised the tobacco board for failing to prevent the price crash and said there was poor coordination with major traders like GPI and ITC.
He noted that while companies lured farmers with the promise of high prices, they slashed rates at harvest time, which was an unacceptable betrayal. He faulted companies for creating a crisis by denying MSP.
To resolve the crisis, the CM said only a Buyback Agreement Policy could protect farmers. He urged farmers to do this with companies from now on. The tobacco board must ensure implementation and monitor purchases. Prices should reflect global demand and supply, ensuring farmer profitability.
He warned that if companies continue to hurt farmers by denying them remunerative prices, farmers may stop cultivating tobacco altogether, forcing companies to shut down.
Naidu also called for a crop rescheduling action plan and public awareness campaigns to shift farmers toward alternative commercial crops.
Reviewing cocoa procurement, the CM asked Mondelez to not buy cocoa beans below `500/kg. He warned against exploitation of farmers and urged coordination with other companies to ensure uniform pricing.
The CM asked Mondelez to prepare a value-chain plan from cultivation to product development. A dedicated cocoa policy, similar to that for oil palm, is needed, he said.
Naidu stated that the government is creating a farmer-and industry-friendly environment, and companies must reciprocate by ensuring justice to farmers. He said every last cocoa bean should be procured from farmers.