Andhra Pradesh Minister for Agriculture and Marketing K. Atchannaidu asked the Tobacco Board to take stern action against companies forming syndicates, to curb profiteering.

Addressing officials through a teleconference on tobacco auctions on Friday (July 3, 2026), Mr. Atchannaidu said all auction platforms must begin operations at once, and every company should take part in the auctions.

He called for efforts to bring down tobacco rejection rates, and warned of stringent action against companies capping prices on good-quality bales to drive down costs.

The Minister also insisted that companies should buy tobacco of all grades, and wanted the Tobacco Board to keep a close watch on all purchases. He stressed the need to educate farmers to bring their produce for auctions as per the Tobacco Board’s guidelines. By doing so, the farmers would get better prices and lower the rejection rates.

The government would consult the Tobacco Board and banks to give credit to farmers who come forward to store tobacco, Mr. Atchannaidu said, adding that the interests of farmers should never be harmed.

Ministers Gottipati Ravi Kumar and Dola Sri Bala Veeranjaneya Swamy, Tobacco Board chairman C. Yashwanth Kumar and others took part.