Centre, AP Govt To Spend Rs 188 Cr On Tobacco Procurement Assistance
29 July 2026 6:28 PM IST29 July 2026 6:28 PM IST
The state Agriculture Minister said the Centre and the state government would jointly spend Rs 188 crore on the assistance package, adding that procurement would begin in the next few days.
AP Agriculture Minister Kinjarapu Atchannaidu Image Source: X
Amaravati: Agriculture Minister Kinjarapu Atchannaidu on Wednesday said the TDP-led NDA government in Andhra Pradesh was leaving no stone unturned to support Flue-Cured Virginia tobacco growers. Announcing assistance of Rs 20 per kg for the procurement of 94 million kg of tobacco, he cautioned that "negative statements" could hurt farmers' interests.
The state Agriculture minister said the Centre and the state government would jointly spend Rs 188 crore on the assistance package, adding that procurement would begin in the next few days.
"Despite financial constraints, we persuaded the Centre to jointly extend assistance of Rs 20 per kg to tobacco growers. Arrangements have been made to spend Rs 188 crore on procuring 94 million kg of tobacco, and the government is ready to begin the process within the next few days," Atchannaidu said in a press release.
He said FCV tobacco growers were facing difficulties due to global conflicts, cheaper tobacco from countries such as Brazil and Tanzania, and prevailing conditions in the international market.
The state government was coordinating with the Centre while urging tobacco companies and traders to procure tobacco from growers, he added.
Atchannaidu said the Tobacco Board, the Centre and the state government were working in coordination to resolve the issues faced by tobacco growers and claimed that the government's efforts to secure financial assistance had been successful.
Recalling earlier interventions, the minister said the TDP government had extended Rs 20 per kg assistance when FCV tobacco prices crashed in 2014-15.
He said the TDP government procured 25 million kg of HD Burley tobacco for Rs 270 crore between 2014 and 2019 to support farmers.
Criticising the erstwhile YSRCP government, Atchannaidu alleged that it procured only 11 million kg of tobacco between 2019 and 2024 and failed to adequately support farmers
The minister said the government was open to constructive suggestions from any political party that benefited farmers, but alleged that YSRCP chief Jagan Mohan Reddy's statements were causing anxiety among tobacco growers and could adversely impact the market.
He urged Jagan to make constructive suggestions for farmers' welfare rather than remarks that, he claimed, could push them into losses.
( Source : PTI )
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