ClearMains
GS3 · Economy8 Jul 2026 · The Hindu — National

Surplus crop, weak exports: the crisis facing Andhra tobacco farmers | Explained

A crop that fetched over ₹360 per kg during the previous season is now struggling to cross ₹265, with the average auction price remaining at just ₹219.50 per kg as of July 6

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Prelims-testable facts

  • 01The average auction price of tobacco in Andhra Pradesh as of July 6 was ₹219.50 per kg.
  • 02Tobacco prices in Andhra Pradesh have declined from over ₹360 per kg during the previous season to ₹265 per kg or less.
  • 03Andhra Pradesh tobacco farmers are facing a crisis due to weak exports and surplus crop.
  • 04The price of tobacco has remained below ₹265 per kg for an unspecified period, leading to a crisis for Andhra Pradesh farmers.
  • 05As of July 6, the average auction price of tobacco in Andhra Pradesh was lower than the previous season's peak price of over ₹360 per kg.
  • 06Tobacco prices have been impacted by weak exports and surplus crop, affecting Andhra Pradesh farmers.

Trap alerts

  • Most people think that tobacco is a major cash crop for Indian farmers, but actually its profitability has declined significantly due to various factors such as weak exports and surplus crop.
  • Many assume that the government has implemented policies to support tobacco farmers, but in reality, there have been no significant initiatives announced or implemented recently.

Mains Practice Question

Critically examine the implications of a significant decline in tobacco prices on Andhra Pradesh's agricultural economy, particularly for small-scale farmers.

250 words

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Prelims Practice MCQs

Single facteasy

Which price did the average auction price remain at as of July 6?

  • A.₹219.50 per kg
  • B.₹265 per kg
  • C.₹360 per kg
  • D.₹400 per kg

The average auction price remained at ₹219.50 per kg as of July 6, a significant drop from previous seasons.

Single factmedium

What was the price fetched by tobacco during the previous season?

  • A.₹300 per kg
  • B.₹320 per kg
  • C.₹360 per kg
  • D.₹380 per kg

Tobacco fetched over ₹360 per kg during the previous season, highlighting a significant decline in prices.

Single facthard

What was the price tobacco is struggling to cross?

  • A.₹240 per kg
  • B.₹260 per kg
  • C.₹280 per kg
  • D.₹300 per kg

Tobacco is struggling to cross ₹265, indicating a significant decline in prices.

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