Amaravati, January 07, 2026: Farmers from Prakasam and Nellore districts, key hubs for FCV tobacco in Andhra Pradesh, have appealed to the Prime Minister, Union Finance Minister, state Chief Minister, and Tobacco Board for a reconsideration of the excise duty hike on cigarettes, notified effective February 1, 2026.
The increase, estimated at 50-60%, follows the end of the GST compensation cess and sets new rates ranging from ₹2,050 to ₹8,500 per 1,000 sticks depending on length.
Growers warn it could force cigarette makers to raise prices, shrinking domestic sales and hitting procurement of Andhra-grown leaf hard echoing the 2014-15 crisis that required official intervention after prices crashed below costs.
Represented by the Federation of All India Farmer Associations (FAIFA), farmers highlight existing tax disparities: FCV tobacco for cigarettes bears far heavier burdens per kilogram than bidis or chewing products, despite strict regulation and compliance.
