After ally demand, govt eases curbs on excess tobacco sales in Andhra

The Centre has relaxed restrictions imposed under the Tobacco Board Act, 1975, to allow the sale of excess Flue Cured Virginia (FCV) tobacco produced by registered as well as unregistered growers in Andhra Pradesh during the 2024-25 crop season.

The decision follows NDA ally and Andhra CM Chandrababu Naidu’s request to support farmers.

A notification issued by the Ministry of Commerce and Industry says the decision was taken in public interest to ensure that excess FCV tobacco stocks were disposed of through authorised auction platforms managed by the Tobacco Board. The move is expected to benefit growers facing challenges in marketing their produce amid oversupply conditions.

The notification mentions that in exercise of powers under Section 30 of the Tobacco Board Act, the government has relaxed provisions of Section 10 and Section 14A of the Act, which otherwise regulate the operations of auctions. This relaxation specifically applies to auctions conducted in AP for the 2024-25 crop year.

“By permitting the sale of both registered and unauthorised FCV tobacco at board-approved auction platforms, the government aims to streamline market operations, prevent distress sales, and protect farmer interests,” said official sources.

The decision comes at a crucial time as the state continues to grapple with fluctuations in tobacco production and demand, ensuring that no excess stock remains unsold. The FCV tobacco is a key commercial crop in Andhra Pradesh, grown predominantly in irrigated Alfisols and traditional black soils, with districts like Eluru, East Godavari, Prakasam, and Guntur being significant growing areas.

The state is a major contributor to India’s FCV tobacco production, although it faces challenges like severe crop damage from natural calamities such as the Michaung cyclone, which impacted the 2023-24 crop.