CPI State secretary G. Eswaraiah has called upon the government to reach out to the tobacco farmers who are affected by sharp fall in prices, formation of a cartel by major purchasing companies, and continued inaction of the Tobacco Board.

In an open letter to Chief Minister N. Chandrababu Naidu on Wednesday, Mr. Eswaraiah said Virginia tobacco growers, whose produce had strong international demand, were unable to recover the cultivation costs in the 2025–26 season.

“Negligence by both the Central and State governments has pushed farmers into losses. Major companies, including ITC and Godfrey Phillips India, are functioning like a cartel and deliberately suppressing procurement prices,” he alleged.

The CPI leader said the first-grade tobacco in Eluru was being purchased at ₹265 per kg and lower grades at about ₹205 per kg, while in Prakasam, Nellore and Markapur regions, prices were even lower.

Mr. Eswaraiah alleged that the companies were citing excess production and global factors such as export disruptions and higher GST to justify low prices, even as there was no significant fall in corporate profits or domestic consumption. He pointed out that fewer than 10% of the crop had been purchased despite the auction season beginning two months ago.

He said that nearly 90% of tobacco growers were small and marginal farmers, with production costs far exceeding current market prices, making cultivation unsustainable. He warned that continued price distress could deepen farmers’ debt burden and trigger a larger agrarian crisis.

The CPI leader demanded a ₹500-crore Price Stabilisation Fund, stronger government participation in auctions, and a guaranteed remunerative price of ₹450 per kg in Eluru and ₹350 per kg in other regions, along with strict action against alleged irregularities in auction centres.