YS Jagan Mohan Reddy, former Chief Minister and leader of the YSR Congress Party, has voiced strong criticism against the coalition government in Andhra Pradesh. He highlighted the increasing distress among tobacco farmers due to rising cultivation costs and falling prices. During his visit to Devarapalli in East Godavari district on August 5, Reddy inspected the local tobacco procurement centre and engaged with farmers about their challenges.

Farmers expressed their concerns over the significant drop in average prices, as many felt betrayed by the Tobacco Board’s failure to uphold procurement assurances. Reddy asserted that a cartel of traders is manipulating prices, causing farmers to sell at distress rates. He stated that farmers are currently facing a ₹75/kg decrease in prices compared to previous years.

Reddy condemned the Chandrababu Naidu administration for fostering an agricultural crisis in the state, claiming it was collaborating with corporations at the expense of farmers. He deemed the government’s subsidy initiatives ineffective, noting a reduction in interest-free loan limits from ₹1 lakh to ₹50,000 compared to the previous YSRCP tenure.

Allegations of Collusion and Market Manipulation

The former Chief Minister detailed that in the 2023-24 agricultural year, the average price for tobacco has plummeted from Rs 289/kg during the last year of YSRCP governance to Rs 214/kg currently. He pointed out that, despite increased production costs, selling prices have decreased significantly over the past two years.

Reddy accused Chandrababu Naidu’s administration of perpetuating lies and collaborating with corporate entities to drive prices down. He claimed that the recent ₹20/kg subsidy announced by the government does little to benefit the farmers while only serving to aid traders. He underscored the severe distress farmers face under the current market conditions.

Additionally, Reddy remarked on Naidu’s promises regarding loans, emphasising that during his regime, interest-free loans extended up to Rs 1 lakh, whereas the current limit is significantly lower. He highlighted the widespread discontent among farmers regarding unsustainable market prices across various crops.

Calls for Action and Market Intervention

YS Jagan Mohan Reddy further raised alarms about the critical situation facing tobacco farmers, particularly in light of reports regarding farmer suicides linked to the ongoing economic crisis. He warned of a potential collapse in prices as auction activities are anticipated to shift to Karnataka.

He dismissed the existing ₹20 subsidy as inadequate and urged Markfed to take a proactive role in tobacco procurement to foster competitiveness and secure fair prices for farmers. Reddy attributed the government’s failure to guarantee Minimum Support Prices (MSP) across all crops as a significant factor in farmer distress.

Reddy articulated that the administration has neglected critical sectors, including agriculture, health, and education, resulting in widespread dissatisfaction among the populace. He also cautioned against the government’s approach of targeting dissenters through false arrests, labelling it a betrayal of the public trust. He underscored the pressing need for Markfed to restore procurement processes that benefit small and marginal farmers whose conditions have deteriorated under the current policies.

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