Agricultural workers in Ongole have launched a massive protest demanding the government allocate ₹1,000 crore for tobacco procurement to offset devastating losses. The Andhra Pradesh Farmers’ Association warns that current relief packages are insufficient to save the sector.

  • Farmers demand ₹1,000 crore for tobacco procurement from a total revenue of ₹80,000 crore.
  • Losses of up to ₹7 lakh per barn reported due to plummeting tobacco prices.
  • Demands include the completion of the Gundlakamma project for irrigation water.

In a significant escalation of agricultural unrest, numerous farmers under the leadership of the Andhra Pradesh Farmers’ Association staged a vigorous protest in front of Prakasam Bhavan in Ongole on Monday. The demonstrators are calling for the immediate intervention of government agencies to facilitate the procurement of tobacco, arguing that the current market volatility has pushed the farming community to the brink of financial collapse.

Addressing the media, the association’s Prakasam district president, Vadde Hanuma Reddy, highlighted a systemic failure in price support. He revealed that the crisis is not limited to tobacco; Bengal gram (chickpea) produced in the region has remained stagnant in cold storage for two years because farmers cannot find a remunerative price that covers their production costs.

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The tobacco sector, a cornerstone of the local economy, is currently in turmoil. According to the association, tobacco prices have plummeted so drastically this year that farmers are incurring losses of up to ₹7 lakh per barn. This staggering deficit has left many tenant farmers and landowners unable to service their debts or invest in the next cropping cycle.

Why This Matters

BozokMedia analysis shows that this protest is not merely about a single crop, but reflects a deeper crisis of market accessibility and government apathy in the agrarian belt. When revenue-generating crops like tobacco contribute significantly to the state and central exchequers—estimated at ₹80,000 crore—the failure to reinvest a small fraction (₹1,000 crore) back into procurement creates a dangerous socio-economic imbalance that can lead to long-term rural distress.

The disparity between the revenue generated from tobacco taxes and the actual procurement support provided to farmers is an unsustainable economic model.

The protesters expressed deep skepticism regarding the government's existing relief measures. Specifically, the offer of an additional ₹10 per kilogram of tobacco and interest-free working capital loans of ₹50,000 for two years were dismissed as "token gestures" that provide no real relief against the scale of the losses being suffered.

Beyond procurement, the association has linked the agricultural crisis to infrastructure failures. They have demanded urgent funding for the Gundlakamma project to complete pending works, which would ensure the steady supply of irrigation water through canals, reducing the farmers' reliance on unpredictable monsoon patterns.

Did You Know?: Andhra Pradesh is one of India's leading producers of Virginia tobacco, which is exported globally, yet local farmers often lack a guaranteed minimum support price.

Frequently Asked Questions

Q1: What is the primary demand of the farmers in Ongole?
The farmers are demanding that the Central and State governments allocate ₹1,000 crore specifically for the procurement of tobacco through government agencies.

Q2: Why are the current relief packages considered insufficient?
The ₹10/kg increase and ₹50,000 loans are seen as negligible compared to the actual losses, which can reach ₹7 lakh per barn.