Archive · 11 Aug 2026
Tobacco farmers need support now, says energy minister Gottipati
Farmers grow tobacco plants to earn money.
Every year, companies are supposed to pay farmers a fair price for their tobacco, called the minimum support price.
This year, some traders and companies are not paying that price, so farmers are losing money.
Government ministers met with farmers and traders in the city of Guntur to talk about this problem.
The energy minister, Gottipati Ravi Kumar, said traders have earned a lot of money over the past four years.
He told them they must now pay farmers the fair price for their tobacco.
He warned that the government will take action against companies that break the rules.
The state government is also giving farmers an extra 10 rupees for every kilogram of tobacco.
The ministers want to make sure farmers get a fair price for their hard work.
Energy minister Gottipati Ravi Kumar warned that strict action would be taken against traders and companies that violate agreements on the minimum support price (MSP) for tobacco.
Ministers Gottipati Ravi Kumar, K Atchannaidu and D B V Swamy met tobacco traders and farmers at the Tobacco Board office in Guntur on Monday.
Ravi Kumar said traders earned substantial profits over the past four years but were unwilling to support farmers facing losses this year.
The Centre and the state government had fixed prices for four tobacco grades this year, and traders were directed to purchase at those prices.
The state government is providing an incentive of Rs 10 per kg of tobacco, while the Centre offers interest-free loans of up to Rs 50,000 per farmer for two years.
- Who
- Energy minister Gottipati Ravi Kumar, ministers K Atchannaidu and D B V Swamy, tobacco traders, purchasing companies, Tobacco Board officials and farmers; Chief Minister N. Chandrababu Naidu is also referenced.
- What
- A meeting demanding that tobacco traders and companies buy tobacco from farmers at the minimum support price, with warnings of strict action for violations.
- When
- Monday, during the current tobacco procurement year, after traders profited over the previous four years.
- Where
- Tobacco Board office in Guntur.
- Why
- Farmers are facing losses while traders are allegedly violating MSP agreements, and the government wants to protect farmers' interests.
Government and farmers
Tobacco traders and companies
MSP compliance
Government and farmers
Traders and companies are violating MSP agreements and must purchase tobacco at the prescribed prices fixed for four grades.
Tobacco traders and companies
The article does not present the traders' response to the allegation that they are refusing to buy tobacco at the minimum support price.
Sharing of profits and losses
Government and farmers
Traders earned substantial profits over the past four years and should now support farmers who are facing losses this year.
Tobacco traders and companies
The article does not present any counterargument from traders regarding the profits or the current losses.
- Meeting venue
- Tobacco Board office, Guntur
- Ministers present
- Gottipati Ravi Kumar, K Atchannaidu, D B V Swamy
- Price grades fixed
- Four tobacco grades this year
- State incentive
- Rs 10 per kg of tobacco
- Central loan scheme
- Interest-free loans up to Rs 50,000 per farmer for two years
- Allegation
- Traders violating MSP agreements made in the presence of the Chief Minister and Union ministers
- Warning
- Strict action against traders and companies violating MSP agreements