After deliberations Andhra Pradesh Government has mandated the tobacco companies to procure Burley tobacco from the farmers in the State at ₹12,000 for quintal for Grade A and ₹5,400 for quintal for Grade B. The Grade A consists of all kinds of qualities while the Grade B is the least quality.  

Minister for Agriculture Kinjarapu Atchannaidu, after a meeting at the camp office of Parchur MLA Yeluri Sambasiva Rao near here on Saturday (May 24), directed the companies to start purchasing the produce from Sunday. The members of Cabinet Sub-Committee on agriculture prices, including Mr. Atchanniadu and Gottipati Ravi Kumar, held the meeting with all the stakeholders, including tobacco growers, farmers associations, companies representatives, officials from Indian Tobacco Board and others.

Minister Atchannaidu maintained that the companies should not return the tobacco on pretexts like quality or others, but must purchase the entire tobacco produced in Andhra Pradesh, estimated about 70 million Kgs. He also assured that the State government would support the farming community and companies by extending financial assistance for processing the Burley tobacco. The State government have to spend for proccessing at least ₹17 per Kg of Burley tobacco and had allocated ₹200 crore for that purpose. Once the tobacco is processed properly, then it could be stored for more than one year and the companies could utilize the produce in the next year as well.  

On the other hand, the Minister informed that the government is also willing to support the companies by deploying the staff from Agriculture and A.P. Markfed, if they need extra staff in procuring the tobacco. At the same time, he added that the State government would procure the tobacco from the farmers through A.P. Markfed, if needed, at the end of the season.  

The Minister for Agriculture urged the companies to procure the entire produce from the farmers, as the tobacco purchased by A.P. Markfed would have to be sold to the same companies.

He assured the farmers that the State government had taken the issue very seriously and would monitor the entire procurement process, till the sale of the last Kg. He also said that the State government would promote alternative crops in the ensuing agriculture year, which would reduce the supply of the Burley tobacco in the market next year. 

Minister Gottipati Ravi Kumar said that both government and companies should protect the lives of the farmers. He observed that the companies enjoyed the profits so far and it is the time for them to come to the aid of the farmers when the entire farming community is in distress. 

Chairman of Tobacco Board of India Yashwanth Kumar Chidipothu said that the Board extended support to the farmers, despite the fact that the Board did not have a mandate with respect to the Burley tobacco.