3 months ago
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Tobacco auctions were suspended crossed astir platforms successful Karnataka connected Wednesday aft agitated farmers protested against a caller slump successful prices.
The baccy farmers, who forced the closure of auction platforms successful Periyapatna and Hunsur taluks of Mysuru district, acceptable occurrence to bales of baccy and spilled the nutrient connected the roads successful a amusement of choler implicit the clang successful prices.
A radical of irate farmers besides staged a roadworthy blockade connected the Hunsur–K.R. Nagar road.
Tobacco prices, which were fetching astir ₹320 per kg astatine the commencement of the auction play successful October 2025, began to diminution successful February aft traders curtailed procurement pursuing the imposition of excise work and the summation successful GST connected baccy products from 28% to 40%.
The terms of bright-grade tobacco, which had already dropped from ₹320 to astir ₹270 per kg successful February, fell further to ₹240-₹250 per kg connected Wednesday.
“Worse still, determination were nary bids for astir 30% of the bales. When determination are nary bids, farmers person to carnivore further proscription costs,” said Vikram Raj Urs, caput of the Federation of Virginia Flue-Cured (VFC) Tobacco Growers’ Association of Karnataka.
Apart from the taxation burden, sources successful the baccy manufacture said geopolitical tensions could besides beryllium affecting procurement. A important quantity of baccy grown successful Karnataka is exported to cigaret manufacturing companies abroad, and traders person expressed interest astir shipping consignments amid the ongoing struggle successful West Asia involving Iran and the Israel–U.S. combine.
Mr. Urs said farmers are seeking a gathering with Union Finance Minister Nirmala Sitharaman to impulse the Centre to reappraisal the taxation load connected baccy products. Alternatively, they privation the authorities to nonstop traders — including cigaret manufacturers and exporters — to measurement up procurement and acquisition the quantity they had committed to earlier the harvest size was fixed.
For the 2025-26 season, the harvest size was fixed astatine 100 cardinal kg, of which astir 87 cardinal kg has been cultivated. So far, astir 57 cardinal kg has been purchased astatine auction platforms, leaving astir 30 cardinal kg yet to beryllium procured.
