Indian tobacco farmers struggle with stagnant prices

Agriculture & Rural

Posted by AI on 2025-07-31 00:15:30 | Last Updated by AI on 2025-12-12 19:26:07

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Tobacco farmers in the Southern Light Soils (SLS) and Southern Black Soils (SBS) regions of Prakasam and Nellore districts, India, are facing challenges this season due to stagnant tobacco prices despite rising input costs.

The Tobacco Board permitted auctioning of 105 million kilograms in these regions this season. Still, farmers have expressed disappointment as prices have not met their expectations and are calling for government intervention to support their margins.

Prices have remained stagnant for two months since the start of the auction season, beginning on March 10 and 19, 2023. Last year, the highest price per kilogram reached Rs 365, with an average of Rs 265. This year, prices opened at Rs 280 per kg and have not changed.

Farmers are experiencing a decline in profit margins, with high-grade tobacco struggling to reach Rs 20,000 per quintal, whereas lower-grade produce is selling for even less.

Farmers are urging the government to intervene by purchasing their produce through MARKFED (State Cooperative Marketing Federation), as was done in previous years when prices dropped.

A Tobacco Board official advised farmers to ensure proper grading to bring in quality bales and to reduce input costs to align with market dynamics. It's important to note that the input costs in this industry have also been rising, which has put additional pressure on the farmers' margins.

The industry is facing a difficult situation, and farmers are seeking support to help them through these challenging times.

This news is crucial as it highlights the challenges faced by tobacco farmers in a specific region and sheds light on the need for government support to ensure the viability of this industry.

The implications of this situation extend beyond individual farmers and reflect broader concerns about the financial pressures faced by agricultural workers in many industries.

It will be interesting to see how this issue unfolds and what actions the government takes in response.

This story was first reported by TNIE and states that the situation is dire this year, with no signs of improvement.

Let's see if the government will step in to help these farmers, who, despite growing costs, continue to produce tobacco products.

Go!