Breaking India News Today | In-Depth Reports & Analysis – IndiaNewsWeek
  • Home
  • Nation
  • Politics
  • Economy
  • Sports
  • Entertainment
  • International
  • Technology
  • Auto News
Reading: Indian Tobacco Farmers Struggle Amid Price Drop and Low Demand
Share
Breaking India News Today | In-Depth Reports & Analysis – IndiaNewsWeekBreaking India News Today | In-Depth Reports & Analysis – IndiaNewsWeek
Search
  • Home
  • Nation
  • Politics
  • Economy
  • Sports
  • Entertainment
  • International
  • Technology
  • Auto News
© 2024 All Rights Reserved | Powered by India News Week
Price plunge and lack of demand hit Indian tobacco farmers hard
Breaking India News Today | In-Depth Reports & Analysis – IndiaNewsWeek > Economy > Indian Tobacco Farmers Struggle Amid Price Drop and Low Demand
Economy

Indian Tobacco Farmers Struggle Amid Price Drop and Low Demand

October 7, 2025 3 Min Read
Share
SHARE

Farmers cultivating Black Burley tobacco in Andhra Pradesh are facing a significant challenge as the new tobacco-crop season approaches. With previous seasons yielding a surplus, many farmers are opting to reduce the area dedicated to this variety due to the absence of viable alternatives and a lack of buyers.

In the last season, farmers produced approximately 80-90 million kilograms (mkg) of Black Burley tobacco, a considerable increase from the average production of 20-25 mkg. This oversupply led to government intervention, with the state buying around 25-30 mkg to assist struggling farmers.

Murali Babu, a leader of the Federation of All India Farmer Associations (FAIFA), expressed concern over the surplus, stating, “I expect them to pare the area to below the normal area to avoid the repetition of what they experienced in the last season.” He highlighted the challenge posed by the lack of viable alternatives that would encourage farmers to exit tobacco cultivation.

The price of Black Burley tobacco fell sharply to ₹110-120 per kilogram in the 2024-25 season, down from ₹230 the previous year. The unusual returns in the last season spurred farmers to increase production threefold, but diminishing demand this year left them with unsold stock, resulting in a dire situation.

The Tobacco Board does not provide support for this variety, forcing farmers to either enter contracts with traders or risk cultivating the crop in hopes of future sales. M Venkateswara Rao, an exporter, argued for urgent reforms in tobacco cultivation and marketing, noting, “Some companies are even allowed joint ventures, yet broader reforms remain stalled. When sensitive industries such as defense manufacturing have welcomed foreign direct investment, why has tobacco, an industry with major health implications and revenue potential, been excluded?”

He mentioned that foreign companies wanting to establish processing and product industries in India are facing regulatory obstacles.

Reflecting on global trends, Venkateswara Rao pointed out that last year, Brazil experienced a drop in crop yield due to floods, while other tobacco-producing nations also saw reduced cultivation. However, this year’s global yields have rebounded. He noted that the market has slowed due to decreased demand following the Covid-19 pandemic, leading to fewer investors and buyers.

Over the next five years, the sector is projected to need ₹1,500–2,000 crore to modernize curing infrastructure, develop traceability systems, secure sustainability certifications, and establish processing hubs. He cited Brazil as an example of modernization and compliance with global sustainability standards, which has allowed its farmers to achieve consistent earnings 15-20 percent higher than competitors.

A tobacco analyst, however, maintained that India possesses sufficient processing capacity to manage the entire production. “I don’t think there is any issue regarding the processing,” he stated.

Published on October 7, 2025.

TAGGED:Economy NewsNews
Share This Article
Twitter Copy Link
Previous Article Broker’s call: Indegene (Add)s - The Hindu BusinessLine Indegene Earns “Add” Rating from Brokers: Strong Growth Ahead
Next Article Is Shivam Dube's 36-match undefeated streak a T20I world record? Check here Shivam Dube’s 36-Match Undefeated Streak: A New T20I World Record?
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Latest News

Why Sierra the Supercomputer Had to Die

The Unplugging of Sierra: Why a Supercomputer’s Time Was Up

February 26, 2026
WI vs SA: Romario Shepherd and Jason Holder create world record in T20 WC with 89-run partnership

Shepherd and Holder Set T20 WC Record with 89-Run Partnership Against SA

February 26, 2026
Where AI lives: Southeast Asia's data centre boom

Southeast Asia’s Data Center Explosion: Where AI Thrives and Grows

February 26, 2026
India's probable XI vs Zimbabwe: Sanju Samson IN, Rinku Singh OUT; What about Tilak Varma?

India’s Likely XI Against Zimbabwe: Sanju Samson Replaces Rinku Singh, What About Tilak Varma?

February 26, 2026
Sri Lanka crash out of T20 World Cup 2026, New Zealand register dominant win in Colombo

New Zealand Dominates as Sri Lanka Exits T20 World Cup 2026 in Colombo

February 26, 2026
Chennai weather report: Will rain spoil IND vs ZIM T20 World Cup 2026 Super Eight clash?

Chennai Weather Forecast: Will Rain Disrupt IND vs ZIM T20 World Cup 2026 Match?

February 26, 2026

You Might Also Like

Real estate developer Puravankara acquires land in Bengaluru for ₹700 crore project 
Economy

Puravankara secures Bengaluru land for ₹700 crore project.

1 Min Read
Powering India’s green future: Why aluminium policy reform is key to net-zero ambitions
Economy

Aluminium Policy Reform: A Crucial Step Toward India’s Green Net-Zero Future

8 Min Read
Cuttack on edge: VHP rallies defy ban as clashes over Durga Puja music trigger curfew and internet shutdown
Nation

Cuttack on Alert: VHP Rallies Ignite Clashes, Prompt Curfew and Internet Shutdown Over Durga Puja Music

4 Min Read
SEBI to improve transparency by revealing Board’s conflicts of interests
Economy

SEBI Mandates Disclosure of Board Conflicts for Transparent Governance

2 Min Read
Breaking India News Today | In-Depth Reports & Analysis – IndiaNewsWeek
Breaking India News Today | In-Depth Reports & Analysis – IndiaNewsWeek

Welcome to IndiaNewsWeek, your reliable source for all the essential news and insights from across the nation. Our mission is to provide timely and accurate news that reflects the diverse perspectives and voices within India.

  • Home
  • Nation News
  • Economy News
  • Politics News
  • Sports News
  • Technology
  • Entertainment
  • International
  • Auto News
  • Bookmarks
  • About us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms of Service
  • Home
  • Nation
  • Politics
  • Economy
  • Sports
  • Entertainment
  • International
  • Technology
  • Auto News
  • About us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms of Service

© 2024 All Rights Reserved | Powered by India News Week

Welcome Back!

Sign in to your account

Lost your password?