Naidu Assures Tobacco Farmers to Intervene With Centre

Vijayawada:Chief Minister N. Chandrababu Naidu has assured flue-cured Virginia (FCV) tobacco farmers that he will take up their issues with the appropriate authorities at the centre.

About 400 FCV tobacco farmers from Prakasam, Nellore, and East Godavari and West Godavari districts met the CM on Tuesday. The farmers requested him to intervene and ensure rollback of the steep hike in central excise duty on cigarettes which, they said, has disrupted the tobacco market.

In particular, the tobacco farmers pointed out that there has been over 70 per cent increase in excise duty, which has shaken the entire tobacco value chain even before the current procurement season has started. They underlined that, as a result, cigarette manufacturers have reduced their purchase of FCV tobacco through auctions. This has led to a fall in the price of tobacco, increasing the distress among growers due to income insecurity.

Tobacco farmers informed Chandrababu Naidu that the sharp tax hike has also fuelled the growth of illicit cigarette trade and smuggling, with untaxed and unregulated tobacco products flooding the market. This, they said, is hurting the Indian manufacturers, while simultaneously eroding the government’s revenues.

Highlighting that cigarettes remain the primary legal outlet for FCV tobacco, the farmers warned that any contraction in the legal market would directly impact auction operations, buyer participation and rural employment. Excessive taxation, they argued, is shrinking the legal market and increasing consumption of illicit products.

Significantly, the delegation of tobacco farmers told the AP Chief Minister that Andhra Pradesh remains a major FCV tobacco-producing state, with lakhs of families dependent on tobacco cultivation and allied activities, such as curing, grading, transport, warehousing, processing, and exports.

"Prolonged disruption could destabilise rural livelihoods across multiple districts,” they informed the CM.

Naidu patiently listened to the farmers. He assured them that various issues involved will be examined seriously. He reiterated that he would take up the issue with appropriate authorities at the centre.