India's tobacco exports jump 166% in value over past decade to ₹17,192 crore

Average prices for Flue-Cured Virginia (FCV) tobacco, the dominant commercial variety, jumped 86.82% to ₹251.14 per kg from ₹134.43 per kg a decade ago. The government attributed the rise to promoting Good Agricultural Practices and supplying quality seeds developed by the National Institute for Research on Commercial Agriculture.

Welfare spending under the Tobacco Board Growers' Welfare Scheme reached more than 1,300 farmers in 2025-26, covering financial assistance for natural and accidental deaths, medical treatment, education, marriage, and barn repairs after natural disasters.

On the enforcement side, the government said it introduced a capacity-based levy under Central Excise for specified tobacco products effective Feb. 1, 2026. Under the Goods and Services Tax regime, a new rule mandates valuation based on retail sale price to collect tax at the first stage of supply. The facility for zero-rated supply on payment of Integrated GST, with refund, was withdrawn.

Manufacturers of pan masala, tobacco, and similar goods must now declare production capacity, machinery, and actual production monthly. The government also inserted Section 148A into the CGST Act to enable a Track and Trace Mechanism for evasion-prone commodities, with Section 122B prescribing penalties for non-compliance.