2 weeks ago
1
The planetary excess accumulation of Flue-Cured Virginia (FCV) tobacco, accrued logistics charges, precocious taxation, and Israel-U.S. and Iran warfare tensions person earnestly affected baccy farmers successful Andhra Pradesh this year.
Explaining the diminution successful baccy exports from India and the acquisition of FCV baccy astatine the ongoing auction platforms successful Andhra Pradesh, Yarlagadda Ankamma Chowdary, Secretary of the Indian Tobacco Association, told The Hindu that exports had declined for these reasons. He added that according to caller statistics, baccy exports had fallen from ₹1,690 crore successful April 2025 to ₹1,102 crore successful April 2026, a diminution of 34.81%.
He said farmers successful Andhra Pradesh had produced excess yield. The Tobacco Board had authorised 142 cardinal kg of FCV baccy harvest for 2025-26, but farmers had produced much than 230 cardinal kg successful Andhra Pradesh. He added that planetary accumulation had besides accrued and surplus FCV was disposable crossed tobacco-growing countries, starring to a alteration successful request for exports. Of the full FCV baccy produced, India exports astir 70% and the remaining 30% is for home consumption, helium said. The home marketplace was besides suffering due to the fact that of caller taxes imposed by the Centre from February 1, 2026, helium added.
Since the Central authorities considers baccy a demerit crop, it has not been providing immoderate incentives adjacent for exports, which has go different origin of interest for farmers and traders successful the sector, Mr. Chowdary added. He said that due to the fact that of the government’s interventions, Indian exporters could not vie with planetary players successful the planetary market.
Referring to the diminution successful this year’s FCV terms astatine auction platforms successful Andhra Pradesh compared to erstwhile years’ auctions, Mr. Chowdary said companies had been incapable to connection higher prices, leaving farmers disappointed. He said galore farmers had been refusing to enactment their nutrient up for auction this twelvemonth due to the fact that they could not find a remunerative price.
