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.
Why it matters
The crisis highlights structural vulnerabilities in agricultural supply chains and the impact of geopolitical instability on commodity exports.
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.
The article presents multiple viewpoints, including those of farmers, the Tobacco Board, and industry associations.
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