FCV tobacco farmers seek review of tax hike on cigarettes

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Flue-Cured Virginia (FCV) baccy farmers from Prakasam and Nellore districts person appealed to the Prime Minister, Union Finance Minister, Andhra Pradesh Chief Minister and the Tobacco Board to reappraisal the steep excise work hike connected cigarettes announced connected December 31, 2025, stating that it could earnestly impact farmers’ livelihood.

During a protest, Federation of All India Farmer Associations (FAIFA) president P.S. Murali Babu said the abrupt summation had created uncertainty among baccy growers. He said farmers were fearing a crisp autumn successful request and prices, making cultivation of the harvest economically unviable.

Farmer leaders who met Tobacco Board Chairman Yashwanth Kumar Chidipothu recalled the 2014–15 episode, erstwhile a taxation summation led to a important driblet successful manufacture procurement and a autumn successful baccy prices, necessitating authorities intervention.

They said the contiguous hike, estimated astatine 50 per cent to 60 per cent, was overmuch higher and could effect successful prices falling beneath the accumulation costs.

India produces astir 325 cardinal kg of FCV baccy annually, with a important stock absorbed by the home cigaret industry. Farmers cautioned that export request was already nether unit owed to planetary oversupply, and immoderate diminution successful home offtake could permission ample quantities unsold.

Published - January 07, 2026 12:13 americium IST

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