YSR Congress Party (YSRCP) general secretary M.V.S. Nagi Reddy has alleged that tobacco farmers in the State are facing financial crisis due to falling auction prices and inadequate government support.

In a statement on Tuesday, Mr. Nagi Reddy said tobacco growers incurred heavy losses for two consecutive rabi seasons despite producing quality crop with good yield. “While production has steadily increased, auction prices have witnessed a sharp decline, adversely affecting tenant, small and marginal farmers,” he said.

According to him, the average auction price during the 2023-24 season was ₹288.65 per kg for a production of 215.35 million kg. In 2024-25, production rose to 240.64 million kg, but the average price dropped to ₹248.86 per kg. For the ongoing 2025-26 season, production was estimated at 266 million kg from 1.17 lakh hectares, while average prices reportedly fell further to ₹235.63 per kg.

Mr. Nagi Reddy said farmers were currently losing nearly ₹53 per kg compared to the 2023-24 season, with higher cultivation costs worsening their financial burden. He also expressed concern over rejection of large numbers of tobacco bales, forcing farmers to bear additional transportation expenses.

Claiming that tobacco marketing slowed considerably, he urged the government to intervene and ensure remunerative prices. He warned that continued distress could have wider repercussions on the State’s economy.