Indian Tobacco product exports fall 34.81%; A.P. farmers hit by surplus, taxes
Tobacco exports from India have significantly declined due to various factors impacting farmers in Andhra Pradesh. The exports fell by 34.81%, attributed to global overproduction, increased logistics costs, and high taxation. Farmers are facing challenges with surplus production and low auction prices, leading to dissatisfaction and reduced participation in the auction process.
- ▪Tobacco exports from India decreased from ₹1,690 crore in April 2025 to ₹1,102 crore in April 2026.
- ▪Farmers in Andhra Pradesh produced over 230 million kg of FCV tobacco, exceeding the authorized 142 million kg.
- ▪New taxes imposed by the Central government have negatively affected the domestic market for tobacco.
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The global excess production of Flue-Cured Virginia (FCV) tobacco, increased logistics charges, high taxation, and Israel-U.S. and Iran war tensions have seriously affected tobacco farmers in Andhra Pradesh this year.Explaining the decline in tobacco exports from India and the purchase of FCV tobacco at the ongoing auction platforms in Andhra Pradesh, Yarlagadda Ankamma Chowdary, Secretary of the Indian Tobacco Association, told The Hindu that exports had declined for these reasons. He added that according to recent statistics, tobacco exports had fallen from ₹1,690 crore in April 2025 to ₹1,102 crore in April 2026, a decline of 34.81%. Chandrababu Naidu seeks tax relief for FCV tobacco farmers; writes to Sitharaman, GoyalHe said farmers in Andhra Pradesh had produced excess yield.
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