Excess FCV Tobacco Sale Allowed, `226 Crore Relief For Growers

The Centre has permitted the sale of excess Flue Cured Virginia (FCV) tobacco produced by registered growers and the unauthorised FCV tobacco produced by unregistered growers through Tobacco Board auction platforms in Andhra Pradesh for the 2025-26 crop season.

This is providing much relief to growers struggling to liquidate their stocks.

The waiver is estimated to provide a financial benefit of around ₹226 crore to growers and facilitate smooth liquidation of excess tobacco.

Tobacco board chairman Chidipothu Yashwanth Kumar and director (Auctions) Srinivas BC said the decision would bring the remaining tobacco stocks into the regulated auction system and facilitate their orderly liquidation.

Against the authorised crop size of 142 million kg, production during the season is estimated at around 236 million kg.

As of September 24, 111.64 million kg, or 47.30 per cent of the estimated production, had been marketed over 148 auction days.

The average price realised so far is ` 213.27 per kg, compared with the final average of `248.86 per kg in 2024-25.

The season initially faced marketing difficulties due to excess availability, carry-over stocks, subdued export demand, slower procurement and increased availability of low-grade and off-style tobacco.

The situation has improved in recent weeks. No-bids, which had touched around 40 per cent, have fallen to about 10 per cent, while liquidation has accelerated to 10-11 million kg a week.

Prices of quality tobacco have also improved, with Northern Light Soils (NLS) tobacco fetching around `346 per kg in recent auctions.

The Centre and the state government have been monitoring the situation, while the commerce ministry reviewed the auction operations with the tobacco board and trade representatives to speed up procurement and ensure orderly completion of the season.