Flue-Cured Virginia tobacco (FCV) farmers from Prakasam, Nellore, East Godavari and West Godavari districts on Tuesday met Chief Minister N. Chandrababu Naidu seeking his urgent intervention to review and roll back the recent steep hike in excise duty on cigarettes.
The representatives told the chief minister that the more than 70% hike in excise duty has already disrupted the tobacco value chain, even before the current marketing season has begun. They said cigarette makers have reduced offtake, causing uncertainty in FCV auctions, depressing prices and causing distress among farmers dependent on the crop.
A delegation led by G. Seshagiri and B. Bramaiah, both former vice-chairmen of the Tobacco Board, argued that the sharp increase in taxes is fueling the illegal cigarette trade and smuggling, leading to an increase in untaxed and unregulated products on the market. Excessive taxation, they argued, was shrinking the legal cigarette market and diverting consumption to illegal channels rather than reducing overall demand.
Pointing out that cigarettes remain the primary legal outlet for FCV tobacco, farmers said any reduction in the sector would have a direct impact on auctions, buyer participation and rural employment. Andhra Pradesh, they noted, is a major FCV-producing state, with thousands of families dependent on cultivation and allied activities.
Mr. Naidu listened patiently to the concerns and assured the delegation that the matter would be seriously looked into and taken up with the Union Government.
Published – 27 Jan 2026 21:06 IST
