Andhra Pradesh’s tobacco belt is in distress, with HD Burley - once a prized variety - collapsing from ₹230 per kg to barely ₹110–₹120 this season. Farmers in Prakasam, Nellore, and Guntur are struggling to cover even their input costs. Without FDI, Andhra’s tobacco sector risks decline; with it, farmers could see a permanent income lift. This is not a temporary blip. It is a symptom of a deeper structural problem: the state’s tobacco economy has stalled.

Andhra Pradesh’s tobacco industry, one of India’s few agricultural export success stories, is valued at nearly ₹12,000 crore annually. This crisis has exposed the fragility of the system. Andhra continues to depend on quota management and incremental subsidies to stabilise farmer incomes. But these instruments are inadequate.