NEW DELHI, 15 August 2025: The Tobacco Board under the Ministry of Commerce and Industry has reported a sharp rise in farmer income and export revenue for Flue cured Virginia (FCV) tobacco, driven by regulatory reforms, e-auctions, and market alignment with global demand.
While the Department of Agriculture & Farmers Welfare runs no schemes to promote tobacco cultivation, the Board plans FCV crop size a season in advance, regulates production, and conducts e-auctions to ensure fair prices and assured supply to traders.
Average farm-gate prices for FCV tobacco nearly doubled from INR 135.24 per kg in 2020-21 to INR 279.54 per kg in 2023-24. Exports of tobacco and related products also surged, rising from INR 6,496.99 crore in 2020-21 to INR 16,728.02 crore in 2024-25. Officials attribute the gains to improved quality standards, measures to protect farmers from global price volatility, and proactive market engagement.
Research support is provided by the ICAR–National Institute for Research on Commercial Agriculture (NIRCA), Rajahmundry, which develops new varieties, advances production and protection technologies, and disseminates best practices tailored to diverse agro-climatic zones.
The Board maintains that its focus remains on stability, quality, and competitiveness in the global market rather than direct farm-to-factory value chain linkages.
Image credit: ibef.org
