Flue-Cured Virginia tobacco(FCV) farmers from Prakasam, Nellore, East Godavari and West Godavari districts on Tuesday met Chief Minister N. Chandrababu Naidu, seeking his urgent intervention to review and roll back the recent steep hike in excise duty on cigarettes.
Representatives told the Chief Minister that the over 70% increase in excise duty had already disrupted the tobacco value chain, even before the start of the current marketing season. They said cigarette manufacturers had reduced offtake, creating uncertainty in FCV auctions, depressing prices and triggering distress among farmers dependent on the crop.
The delegation, led by G. Seshagiri and B. Bramaiah, both former vice-chairmen of the Tobacco Board, alleged that the sharp tax hike was fuelling illicit cigarette trade and smuggling, leading to a surge of untaxed and unregulated products in the market. Excessive taxation, they said, was shrinking the legal cigarette market and diverting consumption to illicit channels rather than reducing overall demand.
Pointing out that cigarettes remain the primary legal outlet for FCV tobacco, the farmers said any contraction in the sector would directly impact auctions, buyer participation and rural employment. Andhra Pradesh, they noted, is a major FCV-producing State, with lakhs of families dependent on cultivation and allied activities.
Mr. Naidu patiently heard the concerns and assured the delegation that the issue would be examined seriously and taken up with the Union government.
Published – January 27, 2026 09:06 pm IST
