Tobacco Board Chairman Chidipothu Yashwanth Kumar during his recent meeting with Union Commerce and Industry Minister Piyush Goyal.
The Government of India has permitted the sale of excess Flue Cured Virginia (FCV) tobacco produced by registered growers and unauthorised FCV tobacco grown by unregistered farmers through the Tobacco Board auction platforms in Andhra Pradesh for the 2025-26 crop season, providing relief to growers facing difficulties in marketing their produce.
Tobacco Board Chairman Chidipothu Yashwanth Kumar told The Hindu here on Friday that the decision would bring the remaining stocks into the regulated auction system and facilitate their orderly liquidation.
Against the authorised crop size of 142 million kg, estimated production during 2025-26 is around 236 million kg. As of September 24, a total of 111.64 million kg, or 47.30% of the estimated production, had been marketed over 148 auction days. The average price realised so far was ₹213.27 per kg, against ₹248.86 per kg during 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.
However, the situation improved in recent weeks, with no-bids declining from around 40% to about 10%. Weekly liquidation increased to 10-11 million kg, while quality NLS tobacco fetched around ₹346 per kg in recent auctions.
The Centre and the Andhra Pradesh government have taken several measures to support growers. The State introduced Price Deficiency Compensation of ₹10 per kg for identified low-grade and off-take tobacco, covering an estimated 94 million kg and involving about ₹94 crore.
The Chairman also welcomed the Centre’s decision to waive additional service charges on excess tobacco produced by registered growers during the current season. About 43,586 registered growers cultivated FCV tobacco over 1,14,423 hectares, producing an estimated 236 million kg. The waiver is expected to benefit registered and unregistered growers, with the financial benefit estimated at ₹226 crore.
Mr. Yashwanth Kumar thanked Union Commerce and Industry Minister Piyush Goyal, Chief Minister N. Chandrababu Naidu, State Ministers Kinjarapu Atchannaidu, Gottipati Ravi Kumar and Dola Sree Bala Veeranjaneya Swamy, Rajahmundry MP Daggubati Purandeswari, other MPs and public representatives for their support in addressing the tobacco growers’ difficulties.
Published – September 25, 2026 07:13 pm IST
