The Tobacco Board, established in 1976, plays a vital role in the development and sustainability of India’s tobacco industry by regulating production, supporting farmers, and promoting exports. Through initiatives such as crop planning, financial assistance, and extension activities, the Board ensures that tobacco farmers produce high-quality crops while receiving fair and remunerative prices. The adoption of an IT-enabled electronic auctioning system has improved price discovery and transparency. The Board’s efforts, along with favourable government policies, have led to significant growth in tobacco exports, which reached a record Rs.12,005.89 crore (US$ 1.40 billion) in 2023-24 and helped increase farmer incomes, which have more than doubled in the last five years.
In the 2023-24 crop season, FCV tobacco farmers in Andhra Pradesh achieved a record production of 215.35 million kg, with a record-high price realization of Rs. 288.65 (US$ 3.36) per kilogram. Despite natural calamities, the resilience of farmers and the surge in international demand contributed to this success. Auctions were held across multiple platforms, involving over 43,000 farmers, with the highest price achieved at Rs. 411 (US$ 4.79) per kg. In addition to these financial gains, the Tobacco Board’s welfare measures, such as penalty waivers and contributions to the Chief Minister’s Relief Fund, further supported farmers during the season.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.