No compromise on MSP for Tobacco, Cocoa, and Chili Crops

metro india news  I amaravati

Andhra Pradesh Chief Minister N. Chandrababu Naidu issued a stern warning to traders and procurement companies on Friday, directing them to ensure Minimum Support Price (MSP) for farmers' produce and to refrain from delaying or halting procurement operations. During a high-level review meeting at his Undavalli residence with officials and representatives from tobacco, cocoa, chili, and paddy procurement sectors, the Chief Minister made it clear: farmers must not incur losses under any circumstances.

“No price cuts, no procurement delays,” he emphasized, particularly instructing companies to immediately purchase leftover tobacco stocks from farmers at a price of ₹12,500 per quintal for HD Burley variety. “If this crisis continues and farmers suffer, we will not hesitate to take action,” Naidu warned traders.

Naidu directed GPI and ITC to commence the procurement of 20 million kg of HD Burley tobacco without delay. “Monitoring of purchases should be done daily via a dedicated control room and WhatsApp groups,” he instructed. 

The agriculture department is to submit reports every two days. The CM emphasized the need to curb excess tobacco cultivation by spreading awareness among farmers and convening awareness meetings from June 2025 onwards.

The Chief Minister insisted that not a single kilo of tobacco should remain unsold in farmers’ houses or fields. He ordered immediate procurement at MSP by companies, with the option of storing in godowns if necessary. “Give me a report by Monday on the price paid and quantity purchased,” he demanded.

Officials informed the CM that a record 450 million kg of tobacco was harvested from 1.9 lakh hectares across the state in the 2024–25 season—an unprecedented output. The spike was due to farmers shifting from other crops to tobacco, influenced by promises of high prices.

Naidu slammed the Tobacco Board for failing to regulate prices and accused companies like GPI and ITC of luring farmers with high price hopes during planting, only to slash prices post-harvest. “This kind of manipulation won’t be tolerated,” he said.

To prevent future crises, Naidu proposed a mandatory buyback policy. “Farmers should cultivate tobacco only if companies agree to a buyback agreement,” he said, directing the Tobacco Board to supervise implementation. He urged price fixation based on global supply-demand dynamics to ensure fair returns for farmers. “If farmers abandon tobacco, companies will be left with nothing,” he warned.

Naidu also addressed concerns of cocoa farmers, directing Mondelez to ensure procurement at not less than Rs.500/kg. “No company will be allowed to exploit cocoa growers,” he said, suggesting the need for an oil-palm-like procurement framework.

Officials reported a bumper cocoa output of 12,000 metric tonnes this year. While most of it was procured, farmers were upset over the sudden dip in prices compared to the previous year. Naidu demanded that the remaining 2,000 tonnes be procured immediately and warned companies against citing quality issues to justify price reductions.

Naidu instructed the marketing department to compile a list of chili farmers who sold at low prices. “Remove middlemen and include only genuine farmers,” he said. He also emphasized educating farmers on quality standards to boost exports and reduce pesticide usage.

Naidu noted that the current rabi season saw procurement of 17.62 lakh metric tonnes of paddy from 1.41 lakh farmers, with Rs.3,258 crore paid. In contrast, during the 2023–24 rabi season under the previous government, only 10.97 lakh tonnes were procured from 49,866 farmers. He also highlighted the kharif season performance, where 35.95 lakh tonnes were procured from over 5.65 lakh farmers this year, against 29.97 lakh tonnes from 4.97 lakh farmers last year.

“This government stands firmly with the farmers,” Naidu declared, urging traders and companies to align with state policies, ensure fair prices, and support agriculture in Andhra Pradesh.