Andhra Pradesh Chief Minister N. Chandrababu Naidu has directed tobacco companies to immediately begin procurement operations at the Minimum Support Price to protect farmers’ interests and restore their confidence.

 

Reviewing tobacco procurement with officials and traders at the Secretariat in Amaravati, the Chief Minister said the price of tobacco should not fall below 200 rupees per kilogram and asked companies to expedite the auction process. Expressing displeasure over the functioning of the Tobacco Board, he questioned the slow pace of procurement in Andhra Pradesh despite normal purchases in neighbouring Karnataka.

 

Mr. Naidu reviewed the procurement commitments of 28 companies and warned that firms failing to honour their procurement indents would face action.

 

Officials informed that companies had placed indents for 142 million kilograms of tobacco, while production reached 232 million kilograms, resulting in oversupply and slower procurement. Company representatives attributed the situation to excess production and declining exports but assured the Chief Minister that procurement would continue.

 

Ministers K. Atchannaidu, A. Ramanarayana Reddy, G.Ravi Kumar and D. Bala Veera Anjaneya Swamy attended the review meeting.