Surplus crop, weak exports: the crisis facing Andhra tobacco farmers | Explained
Tobacco farmers in Andhra Pradesh are facing a severe financial crisis due to a massive production surplus and weak export demand. Government officials have ordered inquiries into potential market manipulation by traders as prices remain significantly below expectations.
The ongoing crisis in the Flue-Cured Virginia (FCV) tobacco sector has exposed deep structural weaknesses in India’s tobacco marketing system , leaving thousands of farmers in Andhra Pradesh facing severe financial distress. A crop that fetched over ₹360 per kg during the previous season is now struggling to cross ₹265, with the average auction price remaining at just ₹219.50 per kg as of July 6. As auctions progress at a sluggish pace, farmers argue that the problem extends far beyond market fluctuations and reflects failures in production planning, procurement and export policy.
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