The government of Andhra Pradesh said it will intervene in the tobacco auction to address pricing problems, reports The New Indian Express.
“In the next two [days] to three days, a special committee will be formed to solve tobacco farmers’ problems,” said Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy on June 18.
In addition to fixing minimum prices for all tobacco qualities, the state government will require all licensed traders to participate in the auctions.
Nearly 20 million kg of low-grade and medium-grade varieties of tobacco, which account for most of the produce, have been rejected by traders this year. Growers also complained that buyers were staying on the sidelines. Of the 920 companies licensed to buy tobacco, fewer than 15 were participating in the auction, the growers said.