Tobacco Market – Southern Region Growers Continue to Face Uncertain Auction Season
Tobacco Market – Tobacco farmers in the Southern Region continue to struggle as the 2026 auction season shows little sign of improving. Many growers are reporting frequent “no-bid” rejections, while the prices being offered remain below their expectations, increasing pressure on farming households already dealing with rising production and transportation costs.
Farmers report low sales despite quality produce
Growers at the Kanigiri auction platform said Saturday’s trading reflected the ongoing uncertainty in the market. Of the 25 tobacco bales brought for sale, only 12 found buyers, with prices ranging between ₹200 and ₹220 per kilogram. The remaining bales were rejected, leaving farmers worried about recovering their investment.
BV Srinivasa Rao, a tobacco farmer from Kanigiri, said repeated rejections and weak price offers have created serious financial difficulties. According to him, transportation expenses continue to rise, while even well-maintained and quality tobacco stocks are failing to attract competitive bids. He also alleged that repeated “no-bid” decisions are creating uncertainty among growers and affecting their confidence in the auction process.
Auction conditions remain uneven across the region
The latest developments come despite recent efforts by Andhra Pradesh Chief Minister N. Chandrababu Naidu, along with discussions involving state ministers and local public representatives, to improve the functioning of tobacco auctions. However, auction activity across the 11 trading platforms in the Southern Black Soils (SBS) and Southern Light Soils (SLS) regions has yet to achieve consistent stability.
Officials monitoring the auctions said that Friday’s trading recorded a rejection rate of 18.40 percent, with 5,573 bales remaining unsold. During the same session, the average auction price stood at ₹195.20 per kilogram, indicating that market values continue to remain below the levels expected by many producers.
Rejection rate increases during Saturday trading
Auction data released for Saturday showed a further rise in the number of rejected bales. Out of 7,612 bales presented for sale, 25.38 percent were rejected. Among these, 1,932 bales received “no-bid” status, meaning buyers did not place any offers during the auction.
The figures suggest that market participation remained inconsistent, with several auction centres witnessing a significant share of unsold produce. Farmers believe the trend is making it increasingly difficult to plan sales and manage cash flow during the current marketing season.
Wide variation seen across auction centres
Kanigiri recorded the highest rejection rate on Saturday at 55.37 percent, highlighting the challenges faced by growers in the area. Vellampalli followed with a rejection rate of 36.50 percent, while Ongole-2 reported 32.26 percent. Kandukuru-2 registered 31.68 percent rejections, and Kaligiri in Nellore district recorded 31.11 percent.
In comparison, a few auction platforms performed relatively better. Kandukuru-1 reported only 7 percent rejections, making it one of the strongest-performing centres during the day’s trading. DC Palli in Nellore district recorded a rejection rate of 9.43 percent, while Kondapi reported 10.60 percent, reflecting comparatively better buying activity.
Farmers seek a more stable auction environment
With auction performance varying widely across different centres, tobacco growers are calling for measures that can improve market confidence and ensure fair opportunities for sellers. Many believe that reducing “no-bid” rejections and encouraging more consistent participation from buyers would help stabilise the auction process and improve returns for farmers during the remainder of the 2026 tobacco marketing season.