In response to farmers’ demands, the Tobacco Board — which regulates the Flue Cured Virginia (FCV) variety — has announced plans to seek a legal amendment to include non-FCV varieties as well, aiming to secure better returns for growers.
Currently, non-FCV varieties account for 70 per cent of the 1,109 million kg (mkg) of tobacco produced annually in the country. Addressing a consultation meeting of tobacco farmers, organised by the Federation of All India Farmer Associations (FAIFA) in New Delhi, Yashwant Kumar Chidipothu, Chairman of Tobacco Board, saidhe supports the farmers’ demand as non-FCV growers are excluded from benefits available to FCV growers.
He said the Board will take up the issue with the Department of Commerce to make suitable changes in the law. Asked whether regulation might disadvantage non-FCV growers, he said it would bring multiple benefits for farmers and help expand the ₹23,000-crore tobacco sector.
Under the Tobacco Board Act, 1975, the Centre controls the cultivation of FCV tobacco in seven districts of Andhra Pradesh, Telangana and Karnataka, and helps farmers sell their produce through auction for better price realisation.
Chidipothu said: “Our FCV auction model is a global benchmark in transparency. The time has come to design a non-FCV regulation model that ensures fair prices, planned production, and farmer dignity.”
Pointing out the recent overproduction of non-FCV varieties such as HDBRG, Rustica and Lal Chopadia, which led to a loss of around ₹500 crore in 2025, he said a mechanism to monitor supply and demand could have helped avoid such over-production and associated losses. The Andhra Pradesh government was forced to procure the produce at a fixed rate after farmers protested the falling prices, he added.
Vested interests
During the seminar, farmers raised concerns about foreign companies promoting tobacco cultivation for nicotine extraction, citing global demand and high prices. This, they said, has led to unsustainable overproduction.
Murali Babu, General Secretary of FAIFA, said: “Vested interests, particularly multinational corporations, are exploiting tobacco farmers by offering attractive prices initially, only to trap them into long-term dependence. Once farmers become reliant, they’re often left vulnerable to unfair practices and price manipulation. This is hurting our livelihoods and creating instability in the sector.”
He added: “We urgently need a unified strategy across states and among farmer leaders. We must reinforce the importance of aligning production with actual demand and take concrete steps to curb overproduction to ensure sustainable income.”
Non-FCV tobacco is largely sold directly to manufacturers without regulatory oversight. India’s non-FCV production, spread across 43 districts of 14 States, is estimated to be 784 mkg in 2025, while FCV production is at about 325 mkg. The FCV variety is used for cigarette making, while non-FCV is primarily used in products like bidis, chewing tobacco and gutka.
Published on October 9, 2025