File image of tobacco being brought to the auction platform in Hunsur. | Photo credit: MA SRIRAM
Tobacco auctions were suspended at most platforms in Karnataka on Wednesday after agitated farmers protested against a fresh drop in prices.
Tobacco farmers, who forced the closure of auction platforms in Periyapatna and Hunsur taluks of Mysuru district, set fire to tobacco bales and spilled the products on roads in a show of anger over the fall in prices.
A group of angry farmers also staged a road blockade on the Hunsur–KR Nagar road.
Tobacco prices, which were hovering around ₹320 per kg at the start of the October 2025 auction season, started falling in February after traders cut back on bidding following the imposition of excise duty and the hike in GST on tobacco products from 28% to 40%.
The price of light tobacco, which had already fallen from ₹ 320 to around ₹ 270 per kg in February, fell further to ₹ 240-250 per kg on Wednesday.
“What’s worse, there were no bids for nearly 30% of the parcels. When there are no bids, farmers have to bear the additional cost of transportation,” said Vikram Raj Urs, secretary of the Virginia Smoke Cured Federation (VFC) of the Karnataka Tobacco Growers Association.
In addition to the tax burden, tobacco industry sources said geopolitical tensions could also affect public procurement. A significant amount of Karnataka-grown tobacco is exported to cigarette companies abroad, and traders have expressed concerns about the shipment amid ongoing conflict in West Asia involving Iran and the Israel-US combination.
Mr. Urs said farmers are seeking a meeting with Union Finance Minister Nirmala Sitharaman to urge the Center to review the tax burden on tobacco products. Alternatively, they want the government to order traders – including cigarette manufacturers and exporters – to step up buying and buy the quantities they have committed to before the crop size is set.
For the 2025–2026 season, the crop size was set at 100 million kg, of which about 87 million kg was grown. So far, around 57 million kg have been purchased on the auction platforms, so almost 30 million kg remain to be obtained.
Published – 11 March 2026 20:34 IST
