AP CM presses ITC, Godfrey Phillips, VST to resume tobacco buying amid surplus glut

CM Naidu urged 28 companies to accelerate procurement against a 142 million kg crop versus just 95.50 million kg indented, insisting prices hold above the ₹200/kg MSP. The oversupply squeeze puts pressure on major buyers ITC, Godfrey Phillips India and VST Industries.

— Filed Thu, 9 Jul, 2026, 20:34 IST · Source The Hindu BusinessLine · Updated

AP CM Naidu urged tobacco companies including ITC, Godfrey Phillips and VST Industries to resume purchases amid oversupply, criticising slow procurement against a 142 million kg crop versus 95.50 million kg indented, insisting prices stay above ₹200/kg MSP.

Why this matters

ITC's tobacco leaf procurement faces state pressure as its agri arm expands—Climate Smart Agri recently scaled to 32 lakh acres with AI climate-risk tools across 140 sites, underscoring its deepening farm-sourcing footprint.

Retail-company signals accelerating at +688600% QoQ.

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