Tobacco growers in Andhra Pradesh's Southern Region have raised concerns over unstable auction conditions, increasing no-bid rejections and prices that they say remain below expectations during the 2026 auction season. Farmers at several auction centres have claimed that despite efforts by authorities to improve the situation, uncertainty continues to affect their earnings and financial stability. At the Kanigiri auction centre, farmers reported that only a portion of tobacco bales brought for sale were purchased on Saturday.

Out of 25 bales presented, 12 were sold at prices ranging between ₹200 and ₹220 per kg, while the remaining stock faced rejection. Growers said transportation expenses and low returns, even for better-quality tobacco, have increased their financial difficulties. Farmer BV Srinivasa Rao from Kanigiri said growers were facing serious challenges due to rising costs and unpredictable auction outcomes. He alleged that repeated "no-bid" rejections were creating uncertainty among farmers and affecting their ability to recover production expenses.

Farmers have been seeking more stable auction processes and better price realisation for their produce. The concerns come despite directions from Andhra Pradesh Chief Minister N Chandrababu Naidu and discussions involving ministers and local representatives regarding the tobacco auction process. However, farmers said auction activity across 11 platforms in the Southern Black Soils (SBS) and Southern Light Soils (SLS) regions has not yet achieved stability.

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According to official data, Friday's auctions recorded an 18.40% rejection rate, involving 5,573 bales, while the average price stood at ₹195.20 per kg. The situation worsened on Saturday, when rejections increased to 25.38% out of 7,612 bales, with 1,932 bales reportedly rejected under the "no bid" category. Several auction centres recorded high rejection levels. Kanigiri reported the highest rejection rate at 55.37%, followed by Vellampalli at 36.50%, Ongole-2 at 32.26%, Kandukuru-2 at 31.68% and Kaligiri in Nellore district at 31.11%.

These figures have added to concerns among farmers who depend on auction sales for their livelihood. However, some centres recorded comparatively lower rejection rates. Kandukuru-1 reported 7% rejections, while DC Palli in Nellore district recorded 9.43% and Kondapi reported 10.60%. The variation across auction platforms has highlighted differences in demand and acceptance levels for tobacco stocks in different markets. Tobacco cultivation remains an important source of income for many farmers in Andhra Pradesh, particularly in regions where soil conditions support commercial production.

Growers have argued that predictable auction outcomes and fair price discovery are essential to ensure financial sustainability. Officials and stakeholders involved in the auction process are expected to continue monitoring market trends and addressing concerns raised by farmers. With the auction season still underway, growers are hoping for improved stability, fewer no-bid rejections and better price realisation for their produce.

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