Yaduveer Krishnadatta Chamaraja Wadiyar, MP for Mysuru, K. Venkatesh, Minister for Animal Husbandry and Animal Husbandry and others at a meeting in Mysuru on Monday to discuss the fall in tobacco prices. | Photo credit: MA Sriram
As tobacco farmers in Karnataka protest against a steep price drop, Mysuru MP Yaduveer Krishnadatta Chamaraja Wadiyar said on Monday that members of parliament from the tobacco-growing regions of Karnataka and neighboring Andhra Pradesh have urged the Center to review the recent hike in taxes on tobacco products.
Speaking to reporters after a meeting convened by the Mysuru Deputy Commissioner to discuss the fall in prices, Mr. Wadiyar said the MPs appealed to Union Finance Minister Nirmala Sitharaman to reconsider the decision to impose 40% GST along with cess on tobacco products.
“It is under review. Appropriate relief will be provided,” he said, arguing that tobacco and its products are harmful and should be taxed appropriately.
Price drop
The price of tobacco has fallen from around ₹320 per kg to ₹270-280, which stakeholders attribute to a sharp reduction in purchasing by cigarette manufacturers following the hike in GST from 28% to 40% with effect from February 1, 2026.
Mr. Wadiyar argued that tax increases are usually passed on to consumers and should not lead to reductions in purchase prices by manufacturers. He said the supply companies have been instructed to continue purchasing at the earlier rates in the interest of farmers. Representatives of tobacco buying firms and cigarette manufacturers who attended the meeting were asked to formally communicate their pricing decisions within 24 hours.
“If any stance against farmers or delay in price fixation continues, the authorities have been directed to initiate strict legal action as per rules,” he said.
He added that a delegation of farmer leaders would soon meet Ms. Sitharaman and Union Commerce and Industry Minister Piyush Goyal to seek a long-term solution to stabilize the tobacco market.
Scaling back
At the meeting, Animal Husbandry and Sericulture Minister K. Venkatesh, who represents the tobacco-growing constituency of Periyapatna, criticized the cigarette makers for curbing purchases despite earlier commitments to the Tobacco Board regarding the amount of purchase when the crop size was fixed last year. He warned that the authorities should consider confiscating corporate losses if contracts are not renewed on auction platforms.
While farmers and members of the public largely blamed procurement agencies and cigarette manufacturers, some also blamed the Tobacco Board for not acting effectively. HP Manjunath, former Hunsur MLA, said the board, which is expected to act as a bridge between farmers and traders, had in the past ordered traders to increase prices during crises, but now seems to have lost control.
Among those present were Ravishankar, KR Nagar MLA, Harish Gowda, Hunsur MLA and M. Lakshmana, a Congress leader.
Published – 23 Feb 2026 20:46 IST
