ONGOLE. Ongole: Tobacco farmers in Ongole district are unhappy with the ongoing auction process as they are not getting the expected high prices for their produce. The farmers allege that the buyers have formed a syndicate to curb the prices offered to them.
There are 11 auction platforms operating this season, including Vellampalli-2, Ongole-1, Ongole-2, Tangutur-1, Kondapi (5), Podili-1, Kanigiri, Kandukur-1, Kandukur-2, Kaligiri and DC Palli (6) in the Southern Black Soil (SBS) and Southern Light Soil (SLS) zones.
On Friday, prices on these platforms ranged from Rs 204 to Rs 331 per kg, with an average of Rs 278.22 per kg in the SLS zone and Rs 284.46 per kg in the SBS zone. Farmers are disgruntled, believing that buyers and exporters are conspiring to control prices by forming syndicates.
“This season, we once got Rs 360 per kg for our bright (number-1 quality) grade tobacco. Now, for several days, we are getting only Rs 331-335 per kg, while the average is Rs 270-280 per kg. We strongly suspect that buyers are colluding to keep prices low. We request the Tobacco Board to intervene and ensure that all buyers participate in the auction so that farmers can benefit with higher prices in line with international market demand,” said Mandalapu Seshagiri Rao, a tobacco farmer from Ongole.
Despite high international market demand, tobacco exporters and agents are attempting to buy the highest grade tobacco at low prices. The season started with a nominal price of around Rs 230 per kg and gradually increased, reaching Rs 360 per kg for bright grade tobacco, much to the delight of growers. However, prices have now come back to Rs 330-335 per kg.
Meanwhile, board officials are cautioning growers against increasing tobacco cultivation next season based on this year’s high prices. Landowners have already increased tenancy amounts and lease rates for tobacco barns. “The demand for tobacco product is highly dynamic. The international market demand we have seen this year may not be the same next year. Therefore, we are advising growers to maintain the existing cultivation area to ensure good returns,” explained M Lakshmana Rao, Ongole-SBS & SLS regional manager.
The growers’ disappointment highlights the tension between farmers seeking fair compensation and buyers aiming to control costs. The Board’s advice to maintain the current cultivation level reflects concerns about market volatility and potential risks of overproduction. The situation calls for careful management to balance the interests of farmers with market realities and avoid future financial losses.
In short, despite high international demand, tobacco growers in the district are facing challenges due to suspected price manipulation by buyers. The Board’s cautious approach and recommendations are aimed at preventing market volatility and ensuring sustainable returns for farmers. As the season progresses, all eyes will be on the auction platforms and the Board’s action to address these burning issues.
