Centre withdraws 18% duty on FCV tobacco, farmers relieved as auctions resume

Centre withdraws 18% duty on FCV tobacco after HDK’s appeal; auctions resume Feb 5, bringing relief to Mysuru and Hassan district farmers

In a major relief to tobacco growers across Karnataka, the central government has withdrawn the 18% excise duty imposed on Flue-Cured Virginia (FCV) tobacco. The decision follows persistent efforts by Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, who intervened after farmers raised concerns over stalled auctions and unsold crops.

The duty had triggered widespread anxiety among growers in Mysuru and Hassan districts, particularly in tobacco belts such as Hunsur, Periyapatna, H.D. Kote, and Arakalgud. Buyers had stayed away from auctions fearing higher costs, leaving farmers unable to sell their produce. With markets closed, crops were drying up and prices were at risk of collapsing.

Responding to the crisis, Kumaraswamy met distressed growers and immediately sought details from the Tobacco Board in Bengaluru and the Central Excise and GST Commissionerate in Visakhapatnam. He then escalated the matter to Union Finance Minister Nirmala Sitharaman, urging swift action to safeguard farmer interests.

On February 1, the Tobacco Board issued an official order confirming the withdrawal of the duty with immediate effect. It directed that auction resume from February 5, reopening the market for thousands of growers.

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Expressing gratitude, Kumaraswamy said, “This decision will benefit lakhs of tobacco farmers to a great extent.” He also acknowledged the support of local leaders including Hunsur MLA G.D. Harish Gowda, Arakalgud MLA A. Manju, former Periyapatna MLA Mahadev, and JDS leader Krishna Nayak from H.D. Kote, who had joined him in pressing for relief.
The minister emphasized that the move reflects the pro-farmer stance of the Narendra Modi government, noting that timely intervention has prevented further distress in the sector. Farmers, who had feared mounting losses, now anticipate renewed stability in the market.

With auctions set to restart, growers in Karnataka’s tobacco heartlands are hopeful of fair prices and smoother sales. The withdrawal of the duty marks a significant policy reversal, ensuring that the livelihoods of thousands of families dependent on tobacco cultivation are protected.

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