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%.

He said farmers in Andhra Pradesh had produced excess yield. The Tobacco Board had authorised 142 million kg of FCV tobacco crop for 2025-26, but farmers had produced more than 230 million kg in Andhra Pradesh. He added that global production had also increased and surplus FCV was available across tobacco-growing countries, leading to a decrease in demand for exports. Of the total FCV tobacco produced, India exports about 70% and the remaining 30% is for domestic consumption, he said. The domestic market was also suffering because of new taxes imposed by the Centre from February 1, 2026, he added.

Since the Central government considers tobacco a demerit crop, it has not been providing any incentives even for exports, which has become another cause of worry for farmers and traders in the sector, Mr. Chowdary added. He said that because of the government’s interventions, Indian exporters could not compete with global players in the international market.

Referring to the decline in this year’s FCV price at auction platforms in Andhra Pradesh compared to previous years’ auctions, Mr. Chowdary said companies had been unable to offer higher prices, leaving farmers disappointed. He said many farmers had been refusing to put their produce up for auction this year because they could not find a remunerative price.