Project Chintan

Tobacco Growers Paralyze NH-16 Over Crashing Prices and Corporate Bias

Hundreds of farmers blocked the Kolkata-Chennai national highway to protest falling tobacco prices and state inaction. The Samyukta Kisan Morcha is demanding a 1,000-crore procurement fund to stabilize the market.

By Project Chintan Newsroom
29 July 2026 · 2 min read
Tobacco Growers Paralyze NH-16 Over Crashing Prices and Corporate Bias

Gridlock at Tangutur Toll Plaza

Traffic on National Highway 16 ground to a halt on Wednesday as hundreds of tobacco growers, operating under the Samyukta Kisan Morcha (SKM) banner, staged a massive sit-in at the Tangutur toll plaza near Throvagunta. The demonstration left vehicles stranded for several kilometers, highlighting the escalating desperation of Virginia tobacco farmers in the Prakasam district.

Discrepancies in State Pricing Policy

SKM Prakasam district committee convener Chunduri Ranga Rao issued a sharp critique of Chief Minister N. Chandrababu Naidu’s administration during the blockade. Despite months of sustained agitation, Rao claims the government has ignored the plight of growers. A primary point of contention is the pricing of low-grade tobacco:

  • The state recently announced a procurement price of ₹110 per kg for low-grade leaf.
  • This figure sits in stark contrast to the average market price of ₹1,877 per kg.
  • Existing directives for an average purchase price of at least ₹200 per kg remain ignored by private traders.

Rao alleged that while the Chief Minister publicizes a pro-farmer stance, actual policy decisions appear to favor corporate entities. He questioned the logic behind the sudden price drop to ₹110 and noted that no traders have faced consequences for defying previous state orders regarding minimum purchase rates.

Demands for a Stabilization Fund

The protest also drew support from the political sector. CPI Prakasam district secretary R. Venkat Rao highlighted the economic contributions of the sector, noting that tobacco exports generate significant foreign exchange and substantial penalty revenues for both state and central coffers.

The activists are demanding a ₹1,000-crore procurement fund to intervene in the market and protect livelihoods. Venkat Rao criticized the Central government for its willingness to waive corporate debt worth trillions while refusing to allocate a fraction of that amount to support the agricultural base. Farmers contend that corporate businessmen currently dictate terms to the government, effectively subordinating state policy to private interests.

Source: The Hindu — News

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