Tobacco in the auction center. Tobacco Board officials informed that auctions have been suspended at Hunsur and Periyapatna platforms in view of farmers’ unrest. | Photo credit: MA Sriram
A steep fall in tobacco prices sparked protests by farmers, forcing the Tobacco Board to suspend auctions at several platforms in Karnataka’s Mysuru district.
Tensions escalated on February 18 when farmers boycotted auctions in Hunsur and blocked the Hunsur–KR Nagar highway, protesting the sudden fall in prices. On February 19, Animal Husbandry and Sericulture Minister K. Venkatesh, who represents Periyapatna, was allegedly beaten up by agitating farmers at the Kaggundi auction platform in Periyapatna.
Tobacco Board officials confirmed that the auctions at Hunsur and Periyapatna platforms have been suspended in view of the unrest.
Farmers said the price of the light variety of tobacco, which was around ₹ 320 per kg, has fallen to around ₹ 280 per kg in recent days, fueling anger and insecurity. Growers have also expressed concern over weak demand from traders, which they say has compounded their losses.
On February 18, protests in Hunsur, where a field officer was allegedly manhandled, turned volatile. Stones were also allegedly thrown in the auction premises, which damaged the glass panes. The farmers further demanded action against the board official for allegedly addressing them in a callous manner.
While auctions were stopped at several centres, board officials said trading resumed on February 19 at platforms in HD Kote, Ramanathapura and Chilkunda.
The fall in prices was attributed to a sharp reduction in buying by the major tobacco company following the hike in GST on tobacco products to 40% with effect from February 1, 2026. In anticipation of a fall in sales after the tax hike, cigarette makers are believed to have cut back on purchases, leading to price volatility.
Federation of Virginia Flue Cured (VFC) Karnataka General Secretary Vikram Raj Urs urged the Center to direct the Tobacco Board to convene a traders’ meeting to resolve the crisis.
Of Karnataka’s estimated 85 million kg tobacco crop, around 49 million kg have already been sold through auctions. The remaining 36 million kg has yet to be released and the fall in prices has raised farmers’ concerns.
On February 18, JD(S) leader Nikhil Kumaraswamy and Hunsur MLA GD Harish Gowda met the protesting farmers. Mr Nikhil said he has spoken to his father, Union Minister for Heavy Industries and Steel HD Kumaraswamy, who will take up the matter with Union Commerce and Industry Minister Piyush Goyal to seek an early resolution.
Published – 19 Feb 2026 16:21 IST