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Tobacco Board cuts crop 43%, farmers seek alternatives
India's Tobacco Board slashed FCV crop by 43% for Andhra Pradesh, 44% for Karnataka for 2026-27. Farmers push for alternative crops and action against illegal growers as costs remain unchanged.
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India's Tobacco Board slashed the flue-cured tobacco (FCV) crop size for the upcoming 2026-27 season, cutting Andhra Pradesh's allocation to 81 million kg from 142 million kg a year earlier. Karnataka's crop limit fell to 51 million kg from 100 million kg. Those are reductions of 43% and 44% respectively.
The board, which operates under the Union Commerce Ministry, cited a global glut and intensifying competition from Brazil and African producers. Actual production had regularly exceeded the board's own limits, depressing auction prices. The decision was the sharpest single-season cut in recent years, though farmers interviewed by businessline said they understood the rationale.
"We know there is a glut," said P.S. Murali Babu, president of the Federation of All India Farmer Associations (FAIFA). "We want the government to come out with a strategy to help farmers identify alternative crops."
Growers are caught between fixed costs and lower output. A farmer from Eluru district, Vivekananda, said the reduced crop size limits his allowed output to roughly 2,000 kg per barn (about 4 acres) for 2026-27, compared with 3,600 kg per barn in the current season. The cost of maintaining the barns does not change, he said. "It makes it unremunerative."