Tirupati: Tobacco growers in Andhra Pradesh are enjoying a windfall this season, as a surge in demand has led to record-breaking prices, with some farmers earning as much as Rs 360 per kg for premium-quality tobacco. The favourable market conditions have turned the 2023-24 season into one of the most profitable years in recent memory, attracting widespread attention from growers hoping to cash in.
This season, tobacco sales across the Nellore district reached 46.8 million kg, with the highest average prices ever recorded at multiple auction centers. Farmers are thrilled, and many are already preparing to expand their acreage next year despite warnings from officials about overproduction and rising land lease costs.
In the Southern Light Soils (SLS) region, which comprises the auction centers Kandukur-1, Kandukur-2, DC Palli and Kaligiri, sales commenced on March 6. Auctions at DC Palli and Kaligiri closed on October 14, while the Kandukur-1 centre concluded on Monday. The auction process stretched over 140 days, longer than usual. The highest quality tobacco attracted a record price of Rs 360 per kg, a first in the SLS region. The average price at various centres for the 2023-24 season was Rs 270 per kg, a notable Rs 50 increase from the previous year's Rs 220.
“We have never seen prices like this in my 20 years of farming. I was able to sell my crop for an average of Rs 270 per kg. This season has been life-changing for us,” said K. Rajesh, a farmer from Kandukur-2. Another farmer, Ramana Reddy from Kandukur-1, echoed similar sentiments saying, “Last year was good, but this year was exceptional. With the profits, I am able to clear my debts and invest in better seeds for next season.”
However, amid the excitement, the Tobacco Board has issued a word of caution to farmers about the potential risks of increasing the acreage. "Farmers should be cautious. While this season has seen record profits, the market is unpredictable, and it is important not to assume prices will remain at these levels. Over-expansion can lead to a surplus and drive the prices down," a tobacco board official said.
The official also warned against the illegal construction of unauthorized barns to store tobacco, emphasising the legal risks and urging farmers to follow the approved guidelines. "It is important for farmers to focus on improving efficiency, cutting costs and maintaining quality rather than chasing more land and barns that could lead to financial strain in the future," he added.
