NEW DELHI, 10 August 2026: The Federation of All India Farmer Associations (FAIFA) has welcomed initiatives by the Central Government and the Andhra Pradesh Government to provide relief to tobacco growers facing financial stress, while urging a calibrated approach to the proposed reduction in authorised Flue-Cured Virginia (FCV) tobacco production.
Tobacco farmers, particularly in Andhra Pradesh, are facing mounting financial pressure amid unsold inventories and weak demand from global buyers. FAIFA said the situation has been further aggravated by high taxation on the legal domestic industry and tax-arbitrage-driven smuggling and illicit trade, which have affected legitimate demand.
The association, however, raised concerns over the Tobacco Board's decision to reduce the authorised FCV tobacco crop size by 43% for the upcoming season. While acknowledging the need to address the demand-supply imbalance, FAIFA cautioned that a sharp reduction could create additional financial stress for farmers already dealing with unsold stocks, weak price realisation and rising debt.
According to FAIFA, costs associated with curing barns, labour and other farm infrastructure will not decline proportionately with lower crop allocations. The association also noted that many FCV-growing regions have specific agro-climatic conditions and limited alternatives that can provide comparable returns.
PS Murali Babu, President, FAIFA, said the objective should be to restore the balance between supply and demand while protecting farmer incomes and strengthening export opportunities.
FAIFA said crop rationalisation should be accompanied by stronger export promotion, improved farmer support and sustained action against illicit tobacco trade. It also pointed to competition from major tobacco-producing countries, including Zimbabwe, Brazil, Zambia and Malawi, which have expanded production despite weak international prices.
The association further highlighted unauthorised tobacco cultivation as a contributor to the current demand-supply imbalance. Rather than relying solely on enforcement, FAIFA proposed a combination of farmer engagement, advance communication of market demand, satellite-based crop monitoring, improved field verification and incentives for voluntary compliance.
FAIFA also welcomed continued engagement between the Government of India, Tobacco Board, farmer organisations, exporters and manufacturers, including reviews by the Department of Commerce, field visits to auction platforms and interactions with tobacco-growing communities.
The association said a farmer-centric approach combining production discipline, financial support, export expansion, action against unauthorised cultivation and protection of the legal market would be important for the long-term sustainability of India's FCV tobacco sector.