YSR Congress MP VY Subba Reddy urged Prime Minister Modi to come forward to help tobacco farmers from Prakasam district to switch over to alternative crops by providing them enough compensation from tobacco board fund. As tobacco had become a bane for these farmers, he said in a letter addressed to Prime Minister Modi, the compensation could be released from the cess collected from farmers and traders by the tobacco board. According to Reddy, the Tobacco Board has an about Rs 400-500 crore fund collected from the cess, taxes and profits. He also brought to the notice of the Prime Minister an anomaly that is providing relief to tobacco barren owners, who had nothing to with the tobacco farming rather than the farmers who were the victims of glut. ” In the case of tobacco farming, owners of tobacco barren will give his barren on lease to the farmer. Even tobacco board recognizes the lease agreement signed between the farmer and barren owner. But, when it comes to the payment of ex-gratia or any other compensation, in the event of crop loss, the tobacco farmer is denied any aid, and owner of barren is beneficiary,” Reddy said.

Reddy suggested that ITC, the principal buyer of tobacco and beneficiary of the trade be roped in to explore the alternative crops for the farmers.” Since ITC has agro products division, it can guide the farmers in the production of other crop which it can buy from the farmers,” he said in the letter.
He also requested the Prime Minister to direct the ministry of commerce and ministry finance to form a consortium with ITC to address the crisis in the tobacco farming in Prakasam district. The district produces 40 per cent of the total crop in India. Of late due to traders cartel and resultant fall prices, many farmers committed suicide unable to cope with collapse of family income. Union common minister personally visited the area and assured central intervention. But, Subba Reddy said nothing had happened so far.