Tobacco farmers protest: MPs seek review of tax hike

With baccy farmers successful Karnataka protesting a crisp autumn successful prices, Yaduveer Krishnadatta Chamaraja Wadiyar, Mysuru MP, connected Monday said Members of Parliament from tobacco-growing regions of Karnataka and neighbouring Andhra Pradesh person urged the Centre to reappraisal the caller hike successful taxes connected baccy products.

Speaking to reporters aft a gathering convened by the Mysuru Deputy Commissioner to sermon the terms crash, Mr. Wadiyar said the MPs had appealed to Union Finance Minister Nirmala Sitharaman to reconsider the determination to levy 40% GST, on with cess, connected baccy products.

“It is nether review. Appropriate alleviation volition beryllium given,” helium said, portion maintaining that baccy and its products are harmful and should beryllium taxed appropriately.

Drop successful prices

The terms of baccy has dropped from astir ₹320 per kg to ₹270–280, which stakeholders property to a crisp simplification successful procurement by cigaret manufacturers pursuing the GST summation from 28% to 40% with effect from February 1, 2026.

Mr. Wadiyar argued that the taxation hike is typically passed connected to consumers and should not person led to a simplification successful procurement prices by manufacturers. He said procurement companies had been instructed to proceed purchases astatine earlier rates successful the involvement of farmers. Representatives of baccy procurement and cigaret manufacturing firms, who attended the meeting, person been asked to formally pass their pricing decisions wrong 24 hours.

“If immoderate anti-farmer stance oregon hold successful terms fixation continues, authorities person been directed to initiate strict ineligible enactment arsenic per rules,” helium said.

He added that a delegation of farmers’ leaders would soon conscionable Ms. Sitharaman and Union Minister for Commerce and Industry Piyush Goyal to question a semipermanent solution for stabilising the baccy market.

Scaling back

At the meeting, Animal Husbandry and Sericulture Minister K. Venkatesh, who represents the tobacco-growing Periyapatna constituency, criticised cigaret manufacturers for scaling backmost procurement contempt earlier commitments to the Tobacco Board connected acquisition quantities erstwhile the harvest size was fixed past year. He warned that authorities should see seizing institution godowns if procurement does not resume astatine auction platforms.

While farmers and nationalist representatives mostly blamed procurement agencies and cigaret manufacturers, immoderate besides faulted the Tobacco Board for failing to intervene effectively. H.P. Manjunath, erstwhile Hunsur MLA, said the Board, which is expected to enactment arsenic a span betwixt farmers and traders, had successful the past directed traders to rise prices during crises but present appeared to person mislaid its grip.

Ravishankar, K.R. Nagar MLA, Harish Gowda, Hunsur MLA, and M. Lakshmana, Congress leader, were among those present.