Crash in tobacco prices: Yaduveer seeks Union Commerce Minister’s immediate intervention

Yaduveer Krishnadatta Chamaraja Wadiyar, Mysuru MP, has written to Union Minister for Commerce and Industry Piyush Goyal, seeking immediate intervention to address the ongoing tobacco price crisis in Karnataka.

In his letter dated February 23 — the same day the Mysuru Deputy Commissioner convened a meeting to discuss the fallouts of the price crash — Mr. Yaduveer highlighted that tobacco prices have dropped by ₹50 to ₹70 per kg, resulting in heavy losses for farmers.

He noted that while 39 to 40 million kg of tobacco has already been sold in auction markets, farmers are urging authorities to ensure that the remaining 40 to 45 million kg is procured at fair and remunerative prices.

The MP said farmers are demanding uniform pricing on par with Andhra Pradesh, where high-grade tobacco fetches over ₹400 per kg. They have also sought a minimum price of not less than ₹250 per kg for medium and No Grade (NOG) bale tobacco.

Pointing out that the sharp decline in prices has affected growers in Hunsur, Periyapatna, K.R. Nagar and H.D. Kote in Mysuru district, as well as Ramanathapura in neighbouring Hassan district, Mr. Yaduveer said production this year is estimated to reach 70 to 80 million kg, against the Tobacco Board-approved crop size of 100 million kg.

He observed that while similar quality of tobacco in Andhra Pradesh fetched around ₹450 per kg, it was initially sold at ₹320 per kg in Karnataka before dropping further by ₹50 to ₹70 per kg. The current average price of ₹260 to ₹270 per kg is causing substantial losses to farmers.

Mr. Yaduveer also pointed out that procurement companies boycotted auctions for nearly 15 days following recent GST and excise duty changes, aggravating the crisis.

Around 53,000 authorised and nearly 20,000 unauthorised growers cultivating tobacco across 60,000 to 70,000 hectares depend on the crop for their livelihood, he said, warning that many families are facing an uncertain future.

Farmers have also demanded withdrawal of penalties imposed on unauthorised growers, greater transparency in price fixation and export data, and an end to arbitrary bale rejections by companies. They have further urged the government to facilitate direct procurement by foreign buyers.

In addition, farmers have sought compensation and support for those willing to shift to alternative crops.

Mr. Yaduveer has urged Mr. Goyal to convene a meeting of the Tobacco Board with all stakeholders at the earliest to ensure fair pricing, transparency, and protection of farmers’ interests. He also called for clear guidance for the upcoming crop season to prevent further distress.