Union Minister for Heavy Industries and Steel HD Kumaraswamy, Minister for Animal Husbandry and Sericulture K. Venkatesh, Yaduveer Krishnadatta Chamaraja Wadiyar, MP and MLA for Hunsur Harish Gowda attending the Tobacco Board meeting in Mysuru on Monday. | Photo credit: MA Sriram
The Tobacco Board has reduced the crop size for Karnataka from 100 million kg in 2025-26 to 90 million kg in 2026-27. The reduction in crop size comes as a result of the decline in tobacco prices.
Tobacco Board chairman Yashwanth Kumar, who attended the board meeting in Mysuru on Monday, said the crop size was reduced not only in view of subdued demand but also to ensure that the current crop is sold at a remunerative price.
Although the crop size for 2025-26 has been fixed at 100 million kg, production is estimated at only 87.97 million kg.
Tobacco farmers in Karnataka have resorted to agitation after prices of light quality varieties fell from a high of ₹320 to ₹270-280 last month.
Traders, who have curbed procurement, blamed the reduced demand for cigarettes for their higher price after the Union Budget imposed excise duty and increased GST on tobacco products from 28 to 40%.
During the meeting, Indian Tobacco Association (ITA) secretary YA Chowdary said production has increased in countries like Brazil and Zimbabwe, which is also impacting prices.
In addition, Mr. Chowdary said the shipment of tobacco to foreign destinations was also disrupted due to the conflict in West Asia and its consequences in West Asian countries.
Responding to demands from elected representatives on options for farmers to switch from tobacco, Mr Kumar said the Niti Aayog was promoting crop diversification to replace tobacco with alternative crops such as sandalwood.
Niti Aayog promotes alternative crops like sandalwood, bamboo and fruits to increase farmers’ income and sustainability.
Animal Husbandry and Animal Husbandry Minister K. Venkatesh and A. Manju, JD(S) MLAs representing Periyapatna and Arkalgud tobacco growing areas in the Legislative Assembly, also demanded compensation for farmers who had come forward to give up their tobacco cultivation licence.
Published – 02 March 2026 20:08 IST
